Economic Overview Of Cambodia

For three decades, constant warfare between the incumbent Cambodian government allied to Vietnam and the communist Khmer Rouge resulted in complete economic mayhem. The country’s natural resources became a pawn in the hands of the controlling power and were used wholly and solely for buying arms and ammunition. For example, the income generated from the country’s gem mines and forests were used by the renegade Khmer Rouge faction to fund their war kitty. In the years after the UN brokered peace, the South-Asian economic crisis coupled with drought in 1998, has further deteriorated the economic situation of the country. Things are beginning to look up: there is increasing assistance from external donors, and the government is trying its best to revitalise the economy. What is heartening is also that political stability finally seems to have come to Cambodia, and this is likely to help the economy get back on its feet.

Cambodia's major industries are garments, rubber, cement, gem mining, textiles, wood and rice milling. GDP is at US$ 8.2 billion, GDP per head at US$ 710 and inflation at 6%. Annual growth is pegged at 6% and Cambodia's major trading partners are Japan, Vietnam, India, USA, Singapore and some of the East European countries.