Background
Since 1999, as peace resumed after three decades of war and unrest, the country has made significant progress in economic performance under the International Monetary Fund's economic reform program. Over the past decade, Cambodia has achieved high economic growth underpinned by prudent fiscal and monetary policies that supported macroeconomic stability. A favorable external environment resulted in new productive opportunities for the country. In the meantime, significant progress has also been made in poverty reduction. However, Cambodia’s economy was hard hit by the global crisis. Real GDP growth contracted in 2009 with sharply falling export and tourism receipts, reflecting a narrow production base, a high concentration of exports, and softening external demand, while lower foreign inflows contributed to a contraction in construction activity. Despite limited exposure to toxic assets abroad, Cambodia’s banking sector was significantly affected by the global crisis as contracting economic activity and declining property prices have weakened the banks’ balance sheets and increased credit risks. The Cambodian government eased policies significantly in response to the crisis, but the fiscal easing was overly expansionary and insufficiently targeted. Still, Cambodia’s economy recovered in 2010. Moving forward, fiscal policy should continue to anchor macroeconomic stability backed by appropriately supportive monetary conditions. Tightening fiscal policy will be necessary to avoid exerting undue pressure on inflation and the exchange rate. Considering the deterioration of the banking sector, efforts are needed to continue strengthening banking supervision, and priorities should include strict enforcement of the new asset classification regime, prompt implementation of corrective action plans, and development of a comprehensive bank restructuring framework. Also, diversifying the country's production base and enhancing competitiveness are key to sustained high growth. The country should particularly focus on improving its basic infrastructure, labor skills and the business climate, as well as expanding market access through trade commitments.
It should also be noted that in recent years, Cambodia has seen a Chinese investment boom which the government says will transform its underdeveloped $10 billion economy and improve living standards for millions of impoverished people. China is Cambodia's biggest source of foreign direct investment and planned to spend $8 billion in 360 projects in the first seven months of 2011-- as much as it invested in the whole of Southeast Asia in 2008. Beijing is also Cambodia's largest source of foreign aid. However, experts warn that a rebellion could be on the horizon as farmers are evicted and entire villages shifted to make way for mining, agriculture and hydropower projects.
Phone Codes
Country Code: 855
Phnom Penh Code: 23
Resources
Market Research
CIA - The World Factbook - Cambodia
This website indicates a wide range of detail information about Cambodia by introducing under 8 different fields as its geography, people, government, economy, communications, transportation, military, transnational issues.
U.S. Department of State - Bureau of Consular Affairs, Washington - Cambodia
The Consular Information Sheet for Cambodia provided by the US Consular Bureau aims to indicate database analysis about Cambodia's political, social & economic environment informing the US investors.
About Cambodia
There is available to find out Cambodian general outlook on the issues of its social and business profile, passport/visa, money, accommodation, government, duty free, health and so forth.
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