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Cambodia Economy 2005

Economy - overview: Cambodia's economy slowed dramatically in 1997 and 1998 due to the regional economic crisis, civil violence, and political infighting, and foreign investment and tourism decreased. In 1999, the first full year of peace in 30 years, the government made progress on economic reforms. Growth resumed and remained about 5% from 2000 to 2004. Economic growth has been largely driven by expansion in the garment sector and tourism, but is expected to fall in 2005 as growth in the garment sector stalls. Clothing exports were fostered by a US-Cambodian Bilateral Textile Agreement signed in 1999 which gave Cambodia a guaranteed quota of US textile imports and established a bonus for improving working conditions and enforcing Cambodian labor laws and international labor standards in the industry. With the January 2005 expiration of a WTO Agreement on Textiles and Clothing, Cambodia-based textile producers are in direct competition with lower priced producing countries such as China and India. Faced with the possibility that over the next five years Cambodia may lose orders and some of the 250,000 well-paid jobs the industry provides, Cambodia has committed itself to a policy of continued support for high labor standards in an attempt to maintain favor with buyers. Tourism growth remains strong, with arrivals up 15% in 2004. The long-term development of the economy after decades of war remains a daunting challenge. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure. Fully 75% of the population remains engaged in subsistence farming. Fear of renewed political instability and a dysfunctional legal system coupled with extensive government corruption discourage foreign investment. The Cambodian government continues to work with bilateral and multilateral donors to address the country's many pressing needs. In December 2004, official donors pledged $504 million in aid for 2005 on the condition that the Cambodian government begins taking steps to address rampant corruption. The next donor pledging session is scheduled for December 2005. The major economic challenge for Cambodia over the next decade will be fashioning an economic environment in which the private sector can create enough jobs to handle Cambodia's demographic imbalance. More than 50% of the population is 20 years or younger.
GDP (purchasing power parity): $26.99 billion (2004 est.)
GDP - real growth rate: 5.4% (2004 est.)
GDP - per capita: purchasing power parity - $2,000 (2004 est.)
GDP - composition by sector: agriculture: 35% industry: 30% services: 35% (2004 est.)
Labor force: 7 million (2003 est.)
Labor force - by occupation: agriculture 75% (2004 est.)
Unemployment rate: 2.5% (2000 est.)
Population below poverty line: 40% (2004 est.)
Household income or consumption by percentage share: lowest 10%: 2.9% highest 10%: 33.8% (1997)
Distribution of family income - Gini index: 40 (2004 est.)
Inflation rate (consumer prices): 3.1% (2004 est.)
Investment (gross fixed): 20.9% of GDP (2004 est.)
Budget: revenues: $548.2 million expenditures: $836.7 million, including capital expenditures of $291 million of which 75% was financed by external assistance (2004 est.)
Agriculture - products: rice, rubber, corn, vegetables, cashews, tapioca
Industries: tourism, garments, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
Industrial production growth rate: 22% (2002 est.)
Electricity - production: 122 million kWh (2003)
Electricity - consumption: 100.6 million kWh (2002)
Electricity - exports: 0 kWh (2002)
Electricity - imports: 0 kWh (2002)
Oil - production: 0 bbl/day (2001 est.)
Oil - consumption: 7,200 bbl/day (2002 est.)
Oil - exports: NA
Oil - imports: NA
Current account balance: $-316.2 million (2004 est.)
Exports: $2.311 billion f.o.b. (2004 est.)
Exports - commodities: Clothing, timber, rubber, rice, fish, tobacco, footwear
Exports - partners: US 55.9%, Germany 11.7%, UK 6.9%, Vietnam 4.4%, Canada 4.2% (2004)
Imports: $3.129 billion f.o.b. (2004 est.)
Imports - commodities: petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products
Imports - partners: Thailand 22.5%, Hong Kong 14.1%, China 13.6%, Vietnam 10.9%, Singapore 10.8%, Taiwan 8.4% (2004)
Reserves of foreign exchange and gold: $997.5 million (2004 est.)
Debt - external: $2.4 billion (2002 est.)
Economic aid - recipient: $504 million pledged in grants and concessional loans for 2005 by international donors
Currency (code): riel (KHR)
Exchange rates: riels per US dollar - 4,016.25 (2004), 3,973.33 (2003), 3,912.08 (2002), 3,916.33 (2001), 3,840.75 (2000)
Fiscal year: calendar year

NOTE: The economy information regarding Cambodia on this page is re-published from the 2005 World Fact Book of the United States Central Intelligence Agency. No claims are made regarding the accuracy of Cambodia Economy 2005 information contained here. All suggestions for corrections of any errors about Cambodia Economy 2005 should be addressed to the CIA.