When looking at the economic situation for Cambodia, information, estimates, and forecasts consider the high mortality rate associated with AIDS, which can reduce a person’s life expectancy. In looking at the country’s economy, Cambodia did see some economic growth from 2004 to 2008 of about 10% each year due primarily to the expansion of several sectors to include garment, building, construction, agriculture, fisheries, farming, transportation, and tourism. In 2005 Cambodia signed the USA/Cambodia Bilateral Trade and Investment Framework Agreement, or TIFA that along with changes to tourism and transportation, it is believed that the economy of this country will stabilize. Cambodia saw a slowing of the economy from 2007 to 2009 because of the world financial crisis but this coupled with a shortage of credit and lower demand of exports, the government of Cambodia understands more aggressive measures are needed to improve the Gross Domestic Product.
Cambodia GDP Forecast
Long-term, economic stability of Cambodia remains a serious challenge. To make improvements the government is working with bilateral and multilateral donors, two being the World Bank and International Monetary Fund. With pressing needs, Cambodia will likely deal with economic challenges for the next 10 years, with a need to create an environment so the private sector could develop jobs. The Cambodia GDP (Gross Domestic Product, Current Prices, US Dollar) at the end of 2009 was at $10.804 billion in US dollars, a reduction of 4.19% from 2008, which closed out at $11.28 billion. When looking at the end of 2010, professionals are forecasting that the GDP will increase by 6.01%, taking the numbers to $11.45 billion. However, a significant jump is expected by 2015, ending at $19.482 billion US dollars
Cambodia Unemployment Forecast
Recent reports show the Cambodia population is nearly 14 million. Although the country has faced some serious economic issues that have affected employment, many believe that things will turn around in the coming years because of new measures being put in place. With more than 50% of Cambodia’s population is 21 or younger, it means that education and production skill levels are very low. On a positive note, bordering Laos, Vietnam, and Thailand, the plains of all four countries have an abundance of rice fields, boosting exportation. Additionally, oil and natural gas reservoirs were discovered under the territorial waters of Cambodia in 2005 with professional extraction to start in 2011. This coupled with the number of people traveling to this country, as tourists increasing there is significant hope for the Cambodia uneployment rate.
Cambodia Inflation Rate Forecast
Two years ago in 2008, the Cambodia Inflation Rate was at 25%. From that time until the end of 2009, an incredible 102.65% reduction was seen, which closed out 2009 at a negative $0.663%. With that, this country was listed as number 166 for world rankings. Now, the end of 2010 is expected to see an even bigger change with a reduction of 883.71%, which would put inflation at a positive 5.20%. So what do forecasters think will happen by the end of 2015? Interestingly, numbers will not be that much different, with expectations at 3.042%.
Cambodia Current Account Balance Forecast
Lastly, for the Cambodia Current Account Balance, forecasters look at trends to determine future numbers. For instance, at year-end 2008, the balance was a negative $1.07 billion in United States dollars, placing this country for world rankings at the number 106 spot. To the end of 2009, a 54.57% reduction was seen, changing the numbers to a negative $0.522 billion. For 2010, experts are forecasting the balance will end up at a 105.36% increase or a negative $1.07 billion. Even at the close of 2015, the numbers are expected to changed somewhat to a negative $1.518 billion.