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[855] (23) 728–000 FAX: [855] (23) 728–600

      Flag description:

      three horizontal bands of blue (top), red (double width), and blue with a white three-towered temple representing Angkor Wat outlined in black in the center of the red band note: only national flag to incorporate an actual building in its design

      Economy

       Cambodia

      Economy - overview:

      From 2001 to 2004, the economy grew at an average rate of 6.4%, driven largely by an expansion in the garment sector and tourism. The US and Cambodia signed a Bilateral Textile Agreement, 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 were forced to compete directly with lower-priced producing countries such as China and India. Better-than-expected garment sector performance led to more than 9% growth in 2007. Its vibrant garment industry employs more than 350,000 people and contributes more than 70% of Cambodia's exports. The Cambodian government has committed itself to a policy supporting high labor standards in an attempt to maintain buyer interest. In 2005, exploitable oil and natural gas deposits were found beneath Cambodia's territorial waters, representing a new revenue stream for the government if commercial extraction begins. Mining also is attracting significant investor interest, particularly in the northeastern parts of the country, and the government has said opportunities exist for mining bauxite, gold, iron and gems. In 2006, a US-Cambodia bilateral Trade and Investment Framework Agreement (TIFA) was signed and the first round of discussions took place in early 2007. The tourism industry continues to grow rapidly, with foreign arrivals reaching 2 million in 2007. In 2007 the government signed a joint venture agreement with two companies to form a new national airline. The long-term development of the economy remains a daunting challenge. The Cambodian government is working with bilateral and multilateral donors, including the World Bank and IMF, to address the country's many pressing needs. 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 less than 21 years old. The population lacks education and productive skills, particularly in the poverty-ridden countryside, which suffers from an almost total lack of basic infrastructure.

      GDP (purchasing power parity):

      $26.19 billion (2007 est.)

      GDP (official exchange rate):

      $8.604 billion (2007 est.)

      GDP - real growth rate:

      10.1% (2007 est.)

      GDP - per capita (PPP):

      $1,900 (2007 est.)

      GDP - composition by sector:

      agriculture: 31% industry: 26% services: 43% (2007 est.)

      Labor force:

      7 million (2003 est.)

      Labor force - by occupation:

      agriculture: 75% industry: NA% services: NA%

      Unemployment rate:

      2.5% (2000 est.)

      Population below poverty line:

      35% (2004)

      Household income or consumption by percentage share:

      lowest 10%: 2.9% highest 10%: 34.8% (2004)

      Distribution of family income - Gini index:

      41.7 (2004 est.)

      Investment (gross fixed):

      19.2% of GDP (2007 est.)

      Budget:

      revenues: $1.015 billion expenditures: $1.168 billion (2007 est.)

      Fiscal year:

      calendar year

      Inflation rate (consumer prices):

      5.9% (2007 est.)

      Central bank discount rate:

      5.25% (31 December 2007)

      Stock of money:

      $513.6 million (31 December 2007)

      Stock of quasi money:

      $2.309 billion (31 December 2007)

      Stock of domestic credit:

      $1.131 billion (31 December 2007)

      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:

      15% (2007 est.)

      Electricity - production:

      1.163 billion kWh (2006 est.)

      Electricity - consumption:

      1.178 billion kWh (2006 est.)

      Electricity - exports:

      0 kWh (2007 est.)

      Electricity - imports:

      110 million kWh (2006 est.)

      Electricity - production by source:

      fossil fuel: 65% hydro: 35% nuclear: 0% other: 0% (2001)

      Oil - production:

      0 bbl/day (2007 est.)

      Oil - consumption:

      3,736 bbl/day (2006 est.)

      Oil - exports:

      0 bbl/day (2005)

      Oil - imports:

      3,618 bbl/day (2005)

      Oil - proved reserves:

      0 bbl (1 January 2006 est.)

      Natural gas - production:

      0 cu m (2007 est.)

      Natural gas - consumption:

      0 cu m (2007 est.)

      Natural gas - exports:

      0 cu m (2007 est.)

      Natural gas - imports:

      0 cu m (2007 est.)

      Natural gas - proved reserves:

      NA

      Current account balance:

      -$506.3 million (2007 est.)

      Exports:

      $4.089 billion f.o.b. (2007 est.)

      Exports - commodities:

      clothing, timber, rubber, rice, fish, tobacco, footwear

      Exports - partners:

      US 58.1%, Germany 7.3%, UK 5.2%, Canada 4.6%, Vietnam 4.5% (2007)

      Imports:

      $5.424 billion f.o.b. (2007 est.)

      Imports - commodities:

      petroleum products, cigarettes, gold, construction materials, machinery, motor vehicles, pharmaceutical products

      Imports - partners:

      Thailand 23.1%, Vietnam 16.9%, China 15%, Hong Kong 10.4%, Singapore 7.5%, Taiwan 7.2%, South Korea 4.8% (2007)

      Economic aid - recipient:

      $698.2

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