The economy of Cambodia is primarily driven by manufacturing and tourism. The country’s exports grew 8% in 2012 to $4.61 billion, but that increase is tempered by political infighting and regional unrest.
However, recent discoveries of natural gas and oil reserves provide a more positive outlook. The industrial sector provides jobs to over 335,400 people, ninety percent of which are women. The nation’s foreign exchange earnings have improved by over $1 billion in the past year, while its domestic savings are still low.
The economy of Cambodia is experiencing rapid growth and development. Since the end of the 30-year war in 1998, Phnom Penh has moved closer to China. The FTA with China will reduce tariffs on 93.8% of all items traded, and with South Korea, it will remove 95.6% of the remaining tariffs.
However, the country’s fiscal and monetary sectors remain weak. This makes it difficult for the government to implement reforms to improve the economy. After the revolution, the country has experienced unprecedented growth, and the government is preparing a plan to implement a new economic model.
It has shifted its alignment from the United States to China, which will help to increase the country’s productivity and decrease its dependence on foreign aid. But the country’s political situation means it cannot pursue this course alone. It will take significant reforms and changes to bring about more economic development.
While the government is taking steps to diversify its economy, it must not ignore the fact that Cambodians have not traditionally engaged in fishing. As a result, commercial fishing has not yet developed in the country.
But while it lacks the skill and capital, its potential benefits are similar to those of neighboring countries. Aquaculture and shrimp farming are also attractive opportunities and could be a good source of extra income for local farmers. Environmental safeguards must be enforced, but there are no such risks at this time.
Despite Cambodia’s relatively low productivity, the country has relatively good resource potential. While Cambodians are poor, there is no shortage of food. The country’s economy relies on China for over 90% of its foreign direct investment.
A recent survey of its labor force found that it is largely unemployed, with many relying on foreign aid. This is a good sign for the future of the country. With the help of the international community, administrative reform and development will help make Cambodia more efficient, more competitive, and less dependent on foreign aid.
Despite the lack of wealth, Cambodia’s economy relies heavily on manufacturing and exports. While the country has high economic growth, it remains one of the poorest nations in the region. Its high labor productivity and low-cost production of goods are driving the country’s economy.
Nevertheless, despite the low labor costs, Cambodia is one of the poorest nations in the region, despite its high GDP. The economy of Cambodia has grown steadily in recent years, with a GDP of $16.6 billion and a purchasing power parity of $36.6 billion.
It has experienced consistent economic growth since 2011, though in 2016 it slowed down to 6.9% from 7% in 2015. Agriculture is the second largest sector of Cambodia, accounting for more than half of its GDP, and employs hundreds of thousands of citizens. The country’s inflation rate is 4%, and its poverty rate is 18.6%.
The economy of Cambodia has been suffering from conflict for several years. In fact, economic stagnation and wrong economic policies have exacerbated the country’s problems. However, the country’s favorable relations with neighboring countries have helped attract foreign direct investment.
With cheap labor and a stable government, the country’s relationship with its neighbors has remained favorable, and the working class has become an important social group. The economy of Cambodia has seen dramatic changes in recent years.
The country’s resource potential is relatively good. The population is still small, and the country does not have much pressure on its land. In fact, it could have a food surplus with some minor improvements in water use, fertilizers, and mechanization.
Besides agriculture, Cambodia has plenty of mineral deposits. The country could also commercially produce oil and gas. A major boost would help the economy of the country. The government’s investment in infrastructure has been critical.
