Cambodia

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Cambodia - In Short.

Overview of Cambodia

Most Cambodians consider themselves to be Khmers, descendants of the Angkor Empire that extended over much of Southeast Asia and reached its zenith between the 10th and 13th centuries. Attacks by the Thai and Cham (from present-day Vietnam) weakened the empire, ushering in a long period of decline. The king placed the country under French protection in 1863, and it became part of French Indochina in 1887. Following Japanese occupation in World War II, Cambodia gained full independence from France in 1953. In April 1975, after a seven-year struggle, communist Khmer Rouge forces captured Phnom Penh and evacuated all cities and towns. At least 1.5 million Cambodians died from execution, forced hardships, or starvation during the Khmer Rouge regime under POL POT. A December 1978 Vietnamese invasion drove the Khmer Rouge into the countryside, began a 10-year Vietnamese occupation, and touched off 20 years of civil war. The 1991 Paris Peace Accords mandated democratic elections and a cease-fire, which was not fully respected by the Khmer Rouge. UN-sponsored elections in 1993 helped restore some semblance of normalcy under a coalition government. Factional fighting in 1997 ended the first coalition government, but a second round of national elections in 1998 led to the formation of another coalition government and renewed political stability. The remaining elements of the Khmer Rouge surrendered in early 1999. Some of the surviving Khmer Rouge leaders were tried for crimes against humanity by a hybrid UN-Cambodian tribunal supported by international assistance. In 2018, the tribunal heard its final cases, but it remains in operation to hear appeals. Elections in July 2003 were relatively peaceful, but it took one year of negotiations between contending political parties before a coalition government was formed. In October 2004, King Norodom SIHANOUK abdicated the throne and his son, Prince Norodom SIHAMONI, was selected to succeed him. Local (Commune Council) elections were held in Cambodia in 2012, with little of the violence that preceded prior elections. National elections in July 2013 were disputed, with the opposition – the Cambodia National Rescue Party (CNRP) – boycotting the National Assembly. The political impasse was ended nearly a year later, with the CNRP agreeing to enter parliament in exchange for commitments by the ruling Cambodian People’s Party (CPP) to undertake electoral and legislative reforms. The CNRP made further gains in local commune elections in June 2017, accelerating sitting Prime Minister HUN SEN’s efforts to marginalize the CNRP before national elections in 2018. HUN SEN arrested CNRP President KEM SOKHA in September 2017. The Supreme Court dissolved the CNRP in November 2017 and banned its leaders from participating in politics for at least five years. The CNRP’s seats in the National Assembly were redistributed to smaller, less influential opposition parties, while all of the CNRP’s 5,007 seats in the commune councils throughout the country were reallocated to the CPP. With the CNRP banned, the CPP swept the 2018 national elections, winning all 125 National Assembly seats and effectively turning the country into a one-party state.Cambodia has strong and growing economic and political ties with its large neighbor to the north, China. More than 40% of foreign investment in the country in 2019 came from China, and Beijing has provided over $15 billion in financial assistance since the 1990s. The CPP also partly sees Chinese support as a counterbalance to Thailand and Vietnam and to international criticism of the CPP’s human rights and antidemocratic record.
Value
Country Full Name
Cambodia
Country Code
KHM
Region
East Asia & Pacific
Income Group
Lower middle income
Currency Unit
GDP
25808561551
Population
16718971
Land Area
176520
Net National Income Per Capita
1319.769443
GDP per Capita (PPP)
4421.480611

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Cambodia - Economic

Economy of Cambodia

Cambodia has experienced strong economic growth over the last decade; GDP grew at an average annual rate of over 8% between 2000 and 2010 and about 7% since 2011. The tourism, garment, construction and real estate, and agriculture sectors accounted for the bulk of growth. Around 700,000 people, the majority of whom are women, are employed in the garment and footwear sector. An additional 500,000 Cambodians are employed in the tourism sector, and a further 200,000 people in construction. Tourism has continued to grow rapidly with foreign arrivals exceeding 2 million per year in 2007 and reaching 5.6 million visitors in 2017. Mining also is attracting some investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems.   Still, Cambodia remains one of the poorest countries in Asia, and long-term economic development remains a daunting challenge, inhibited by corruption, limited human resources, high income inequality, and poor job prospects. According to the Asian Development Bank (ADB), the percentage of the population living in poverty decreased to 13.5% in 2016. More than 50% of the population is less than 25 years old. The population lacks education and productive skills, particularly in the impoverished countryside, which also lacks basic infrastructure.   The World Bank in 2016 formally reclassified Cambodia as a lower middle-income country as a result of continued rapid economic growth over the past several years. Cambodia’s graduation from a low-income country will reduce its eligibility for foreign assistance and will challenge the government to seek new sources of financing. The Cambodian Government has been working with bilateral and multilateral donors, including the Asian Development Bank, the World Bank and IMF, to address the country’s many pressing needs; more than 20% of the government budget will come from donor assistance in 2018. A 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.   Textile exports, which accounted for 68% of total exports in 2017, have driven much of Cambodia’s growth over the past several years. The textile sector relies on exports to the United States and European Union, and Cambodia’s dependence on its comparative advantage in textile production is a key vulnerability for the economy, especially because Cambodia has continued to run a current account deficit above 9% of GDP since 2014.

Unemployment Rate

Inflation Rate

Cambodia - GDP Composition

GDP Composiiton & Value Added of Cambodia

Last Updated: Jan, 2021, Updated For 2020.

Cambodia - GDP, Value Added

Demographics of Cambodia

population concentrated in the southeast, particularly in and around the capital of Phnom Penh; further distribution is linked closely to the Tonle Sap and Mekong Rivers
Geographic Location

Southeastern Asia, bordering the Gulf of Thailand, between Thailand, Vietnam, and Laos

Races

Khmer 95.4%, Cham 2.4%, Chinese 1.5%, other 0.7% (2019-20 est.)

Languages

Khmer (official) 95.8%, minority languages 2.9%, Chinese 0.6%, Vietnamese 0.5%, other 0.2% (2019 est.)major-language

Religion

Buddhist (official) 97.1%, Muslim 2%, Christian 0.3%, other 0.5% (2019 est.)

Dependency & Expectancy of Cambodia

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Cambodia - Social Media Briefing

Cambodia - Social Media & Social Commerce

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Politics & Policies of Cambodia

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ADB, ARF, ASEAN, CICA, EAS, FAO, G-77, IAEA, IBRD, ICAO, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, IOM, IPU, ISO (correspondent), ITU, MINUSMA, MIGA, NAM, OIF, OPCW, PCA, UN, UNAMID, UNCTAD, UNESCO, UNIDO, UNIFIL, UNISFA, UNMISS, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Cambodia

Export of Cambodia

Import Destination

Export Destination