Cambodia / Economic Data

The gross national product (GNP) per capita in Cambodia is US $ 1,266 per year. This figure has been arrived at by a new system of measuring, used by international organizations like the World Bank.

Using the old method, the GNP of a country was initially calculated in the national currency and the resulting figure converted into US Dollars at exchange rates prevailing among banks.

But who in the world wants Cambodian Riel?

The new system of measuring works differently. Percapita GNP is not expressed in currency, but in buying potential.

This means: the accumulated percapita GNP in Cambodia equals a buying potential sufficient for a certain amount of rice, meat, washing powder, etc. The US dollar figure expresses what the same basket of goods would cost in the US, or in worldwide average.

While average percapita GNP in Cambodia is US $ 1,266, it is US $ 5,665 in Thailand; in Vietnam it is lower than in Cambodia, US $ 1,263. In Afghanistan it is even lower at US $ 760, and in Burma it's a meagre US $ 676 per year barely more than half of the Cambodian figure.

This does not necessarily mean that the average Cambodian is economically better off than the average Vietnamese. For in Cambodia, a substantial part of percapita GNP is still spent for war material. Today's Cambodians also start business at a lower level of percapita property, and furthermore, a substantial part of accumulated GNP is destroyed again and again by actions of war. The distribution of income may also be less equal in Cambodia than in Vietnam.

Fact is, the average Cambodian seems to be worse off than the average Vietnamese. A relevant point of reference here average life expectancy and medical provision rather than percapita GNP.

Percapita GNP, however, is a reference point for the natural resources of a country. Cambodia need not be a poor country, as shown by percapita GNP created under strenuous conditions. Cambodia owns large forests of the most precious woods and the most productive gem mines of the world (except diamonds). Much of the country is a fertile plain nurtured by one of the most powerful rivers of Asia, the Mekong.

In fact, Cambodia could be a rich country. Its preconditions are several times better than those of Ethiopia, Turkey, Peru, Egypt, Afghanistan or Iraq. Though, in the absence of sufficient political stability, the economic growth potential cannot be realized.

Therefore, percapita GNP in Cambodia, based on buying potential, amounts to only US $ 1,266 per annum, while in Thailand it is US $ 5,665, in the Philippines US $ 2,440 and in China US $ 2,413. In comparison: percapita GNP, based on buying potential, is US $ 20,165 in Germany, and $ 22,595 in the US.

Additional, editorially modified, material from Wikipedia:

Final economic indicators for 2007 are not yet available. 2006 GDP was $7.265 billion (per capita GDP $513), with annual growth of 10.8%. Estimates for 2007 are for a GDP of $8.251 billion (per capita $571) and annual growth of 8.5%). Inflation for 2006 was 2.6%, and the current estimate for final 2007 inflation is 6.2%.

Per capita income is rapidly increasing, but is low compared with other countries in the region. Most rural households depend on agriculture and its related sub-sectors. Rice, fish, timber, garments and rubber are Cambodia's major exports. The International Rice Research Institute (IRRI) reintroduced more than 750 traditional rice varieties to Cambodia from its rice seed bank in the Philippines (Jahn 2006,2007). These varieties had been collected in the 1960s. In 1987, the Australian government funded IRRI to assist Cambodia to improve its rice production. By 2000, Cambodia was once again self-sufficient in rice (Puckridge 2004, Fredenburg and Hill 1978).

The recovery of Cambodia's economy slowed dramatically in 1997–98, due to the regional economic crisis, civil violence, and political infighting. Foreign investment and tourism also fell off drastically. Since then however, growth has been steady. In 1999, the first full year of peace in 30 years, progress was made on economic reforms and growth resumed at 5.0%. Despite severe flooding, GDP grew at 5.0% in 2000, 6.3% in 2001, and 5.2% in 2002. Tourism was Cambodia's fastest growing industry, with arrivals increasing from 219,000 in 1997 to 1,055,000 in 2004. During 2003 and 2004 the growth rate remained steady at 5.0%, while in 2004 inflation was at 1.7% and exports at $1.6 billion US dollars. As of 2005, GDP per capita in PPP terms was $2,200, which ranked 178th (out of 233) countries.

The older population often lacks education, particularly in the countryside, which suffers from a lack of basic infrastructure. Fear of renewed political instability and corruption within the government discourage foreign investment and delay foreign aid, although there has been significant assistance from bilateral and multilateral donors. Donors pledged $504 m to the country in 2004, while the Asian Development Bank alone has provided $850m in loans, grants, and technical assistance.

The tourism industry is the country's second-greatest source of hard currency after the textile industry. 50% of visitor arrivals are to Angkor, and most of the remainder to Phnom Penh. Other tourist destinations include Sihanoukville in the southeast which has several popular beaches, and the nearby area around Kampot including the Bokor Hill Station.

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