Countries / Regions

Viewer's Corner

Asianinfo Photo Gallery
Photos of Asia now available for purchase 

FREE Photos available!


Korea

Thailand

Indonesia

Malaysia

Hong Kong

Singapore

Japan

Shanghai

USA

Israel

Cambodia's Main Page

The Cambodian Economy

AsianInfo.org supports I.C.E.Y. - H.O.P.E. (non-profit org)
(International Cooperation of Environmental Youth - Helping Our Polluted Earth) Any advertisement you view helps save the environment!  Thanks!

One of the world's poorest countries, the majority of Cambodia's population (about 74%) is employed in agriculture.  The Khmer Rouge regime (1975-1979) nationalized the production process and collectivized agriculture and carried out its four year plan, which was unsuccessful for many reasons.

The regime depleted the work force by executing those thought to be enemies of the regime and brutally enforcing the plan by overworking, mistreating and abusing the population.  Many Cambodian's died from misdiagnosed illnesses and malnutrition.  With the civil unrest, Cambodia's already weak economy was essentially destroyed.  

Even by 1995, the economy on average was performing much lower than its capacity before 1970.  After the Khmer Rouge was overthrown in 1979, many people returned to being subsistence farmers.  An improvement in the economy was gradually observed, and by the mid-1990s, small amounts of rice were exported as Cambodia had become self-sufficient in rice production again. 

In 1997, agriculture contributed to 51 percent of Cambodia's GDP, with rice being the most important crop.  With rice being a staple in their diet as well, over half of cultivated land is planted with rice.  An important natural resource for Cambodians, fish is an important part of their diet as well.  The Tonle Sap is a great source of freshwater fish for Cambodians, with the main types caught are perch, carp, lungfish and smelt.

Cambodia's per capita income is rapidly increasing, but is low compared with other countries in the region. Most rural households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber are Cambodia's major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines. These varieties had been collected in the 1960s.

In 1987, the Australian government funded IRRI to assist Cambodia to improve its rice production. By 2000, Cambodia was once again self-sufficient in rice. However, few Cambodian farmers grow other crops leaving them vulnerable to crop failure. In recent years, various international aid organisations have begun crop diversification programs to encourage farmers to grow other crops.

The recovery of Cambodia's economy slowed dramatically in 1997–98, because of the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism also fell off drastically. Since then however, growth has been steady. In 1999, the first full year of peace in 30 years, progress was made on economic reforms and growth resumed at 5.0%.

Despite severe flooding, GDP grew at 5.0% in 2000, 6.3% in 2001, and 5.2% in 2002. Tourism was Cambodia's fastest growing industry, with arrivals increasing from 219,000 in 1997 to 1,055,000 in 2004. During 2003 and 2004 the growth rate remained steady at 5.0%, while in 2004 inflation was at 1.7% and exports at $1.6 billion USD. As of 2005, GDP per capita in PPP terms was $2,200, which ranked 178th (out of 233) countries.

Prasat Angkor Wat, the biggest tourist draw of Cambodia

The older population often lacks education, particularly in the countryside, which suffers from a lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid, although there has been significant assistance from bilateral and multilateral donors. Donors pledged $504 million to the country in 2004,^] while the Asian Development Bank alone has provided $850 million in loans, grants, and technical assistance.

The tourism industry is the country's second-greatest source of hard currency after the textile industry. Between January and December 2007, visitor arrivals were 2.0 million, an increase of 18.5% over the same period in 2006. Most visitors (51%) arrived through Siem Reap with the remainder (49%) through Phnom Penh and other destinations. Other tourist destinations include Sihanoukville in the south east which has several popular beaches, and the area around Kampot and Kep including the Bokor Hill Station.