Economy of Cambodia

Economy of Cambodia

Phnom Penh, the capital and largest city of Cambodia
Currency	Riel (KHR, ៛)
Fiscal year	Calendar year
Trade organisations	WTO, ASEAN, AFTA, RCEP, SCO, G77
Country group	Least developed[1] Lower-middle income economy[2]
Statistics
Population	17,181,065 (2024)[3]
GDP	$45.15 billion (nominal, 2024 est.)[4] $142.39 billion (PPP, 2024 est.)[4]
GDP rank	98rd (nominal, 2024) 89th (PPP, 2024)
GDP growth	3.1% (2021) 5.1% (2022) 5.0% (2023) 6.0% (2024)[5]
GDP per capita	$2,636 (nominal, 2024 est.)[4] $8,290 (PPP, 2024 est.)[4]
GDP per capita rank	98th (nominal, 2023) 89th (PPP, 2023)
GDP by sector	agriculture: 25.3% industry: 32.8% services: 41.9% (2023 est.)[6]
Inflation (CPI)	2% (2023 est.)[4]
Population below poverty line	14.2% (2022, World Bank)[7] N/A on less than $3.20/day[8]
Gini coefficient	23.6 medium (2024)[9]
Human Development Index	0.600 medium (2023)[10] (146th) 0.593 medium IHDI (2022)[11]
Labour force	9,230,114 (2019)[12] 81.1% employment rate (2016)[13]
Labour force by occupation	agriculture: 21.87% industry: 37.67% services: 33.74% (2023 est.)[6]
Unemployment	0.3% (2017 est.)[6] high underemployment, according to official statistics
Main industries	tourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
External
Exports	$20.126 billion (2021 est.)[6]
Export goods	clothing, precious metal scraps, trunks/cases, gold, leather footwear
Main export partners	United States 36.3%  Vietnam 10.2%  Germany 6.72% (2022)[14]
Imports	$32.83 billion (2021 est.)[6]
Import goods	refined petroleum, clothing, gold, cars, flavored water
Main import partners	China 30.3%  Thailand 19.1%  Singapore 18.2%  Vietnam 12.7% (2022)[15]
FDI stock	$53.5 billion (2023 est.)[6] Abroad: N/A
Current account	−$1.563 billion (2024 est.)[6]
Gross external debt	$22.6 billion (31 Dec 2023 est.)[6]
Public finances
Government debt	32.5% of GDP (2024 est.)[6]
Budget balance	−3.5% (of GDP) (2024 est.)[6]
Revenues	9.354 billion (2022 est.)[6]
Expenses	9.698 billion (2022 est.)[6]
Economic aid	$934 million pledged in grants and concessional loans for 2011 by international donors
Credit rating	Standard & Poor's:[16] B+ (domestic) B+ (foreign) BB- (T&C assessment)
Foreign reserves	$21.285 billion (25 April 2024 est.)[6]
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars.

Part of a series on the
History of Cambodia
Early history
Funan Chenla Khmer Empire Angkor Khmer–Cham wars Đại Việt–Khmer War
Post-Angkor Period
Chaktomuk era Longvek era Siamese-Cambodian War Cambodian–Spanish War Cambodian–Dutch War Oudong era Loss of Mekong Delta Nguyễn Kingdom's invasion
Colonial period
French protectorate French Indochina Japanese occupation (Cambodia in 1945)
Independence and conflict
Post-independence US bombing Sihanouk Trail Cambodian campaign 1970 coup Khmer Republic US bombing Cambodian Civil War Fall of Phnom Penh Democratic Kampuchea Mayaguez incident Cambodian genocide Cambodian–Vietnamese War People's Republic of Kampuchea exiled coalition government K5 Plan
Peace process
1991 Paris Peace Agreements United Nations Transitional Authority (UNTAC, 1992–93) 1993 election Khmer Rouge PGNUNSC
Modern Cambodia
Economy 1997 coup Khmer Rouge Tribunal 2003 Phnom Penh riots Cambodian–Thai border dispute 2013–2014 protests COVID-19 pandemic
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The economy of Cambodia (Khmer: សេដ្ឋកិច្ចនៃកម្ពុជា [setʰakəc nəj kampuciə]) currently follows an open market system (market economy) and has seen rapid economic progress in the last decade.^[17] Cambodia had a gross domestic product (GDP) of $28.54 billion in 2022.^[18] Per capita income, although rapidly increasing, is low compared with most neighboring countries. Cambodia's two largest industries are textiles and tourism, while agricultural activities remain the main source of income for many Cambodians living in rural areas.^[19] The service sector is heavily concentrated on trading activities and catering-related services. Recently, Cambodia has reported that oil and natural gas reserves have been found off-shore.^[20]

In 1995, with a GDP of $2.92 billion^[21] the government transformed the country's economic system from a planned economy to its present market-driven system.^[22] Following those changes, growth was estimated at a value of 7% while inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased due to the influx of foreign aid, and exports, particularly from the country's garment industry, also increased. Although there was a constant economic growth, this growth translated to only about 0.71% for the ASEAN economy in 2016, compared with her neighbor Indonesia, which contributed 37.62%.^[23]

After four years of improving economic performance, Cambodia's economy slowed in 1997–1998 due to the regional economic crisis, civil unrest, and political infighting. Foreign investments declined during this period. Also, in 1998 the main harvest was hit by drought. But in 1999, the first full year of relative peace in 30 years, progress was made on economic reforms and growth resumed at 4%.

Currently, Cambodia's foreign policy focuses on establishing friendly borders with its neighbors (such as Thailand and Vietnam), as well as integrating itself into regional (ASEAN) and global (WTO) trading systems. Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden countryside, which struggles with inadequate basic infrastructure. Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.^[24]