Cambodia Economic Structure

Cambodia is a poor country, struggling to achieve long-term development for decades now. Cambodia’s economic structure improved rapidly in the first decade of the 21^st century, with 10% annual growth from 2004 to 2007. Its per capita income has increased overtime, although it is still lower that that of India and China.[br] 

Cambodia is a poor country, struggling to achieve long-term development for decades now. Cambodia’s economic structure improved rapidly in the first decade of the 21^st century, with 10% annual growth from 2004 to 2007. Its per capita income has increased overtime, although it is still lower that that of India and China.[br] 

Cambodia Economic Structure: Division

Agriculture and its associated sub-sectors remain the primary household activity for most Cambodians. Other primary sub-sectors include fisheries, timber and rubber plantations. Rice has always been the major crop of the country and one of the major export products. Crop diversification programs have now been brought in by many international aid organizations.

 

The country’s secondary sector includes several small and medium enterprises that carry out diverse manufacturing activities on an informal basis. The manufacturing sector mainly comprises of garment and construction companies. Cambodia’s natural resources have remained largely unexplored. Oil and natural gas reserves have been discovered off-shore. The country also has a wealth of bauxite and iron ore that are still to be explored. Due to a fall in commodity prices, Cambodia was unable to leverage on its abundance of new found natural resources.

 

Cambodia’s WTO Agreement on Textiles and Clothing expired in January 2005, making the nation vulnerable to high competition posed by low cost producers China and India. In 2008, the economic growth fell to below 7%, which was a big blow to the country’s development plans. The global recession hit the major industries of the country, bringing down exports and increasing imports. According to the Garment Manufacturers Association of Cambodia, the garment industry had to import US$1 billion worth of raw materials in 2008. The garment exports to the US and Europe fell by 35% and 10%, as estimated by the World Bank.

 

The tertiary sector is mainly comprised of trading activities and services related to catering and hospitality.

 

Cambodia Economic Structure: Gross Domestic Product[br]

 

The GDP (purchasing power parity) contributions in the country are as follows:

           

• $27.92 billion (2009 est.)

• $28.34 billion (2008 est.)

• $26.99 billion (2007 est.)

 

The Democracy of Cambodia is working to rebuild its physical, social and economic foundations to achieve its future growth plans. Strong international support has helped the country remain stable economically. Some security and a democratic rule have been re-established by The United Nations Transitional Authority in Cambodia.