The World Bank (WB) put Cambodia on the list of fastest-growing countries with its average annual growth rate of 7.6% between 1994 and 2016. At the same time, the country continues to implement its macroeconomic policy in a prudent manner while maintaining low inflation and keeping public debt under control.
Cambodia has also promoted the transformation of its economic structure from an agriculture-based country to a country based on industry and services, and continued to retain its economic growth of 7% in 2017 thanks to the strong expansion of textile and garment exports and the growth of construction, real estate and tourism - the pillars of the Cambodian economy.
According to forecasts by many international financial institutions, including the WB, Cambodia's steady growth will continue unabated in the medium term.
Foreign direct investment (FDI) is one of the highlights of the Cambodian economy and it has contributed to stimulating the country's growth. Cambodia attracted approximately US$1.5 - US$2 billion worth of FDI each year during the 2012-2016 period. In the first four months of this year, more than US$634 million of FDI capital was poured into Cambodia with 47 newly registered projects.
Dr. Hing Thoraxy from the Cambodian Institute for Cooperation and Peace said that FDI inflows into Cambodia over the past years have helped the country to stabilise its macroeconomic indicators while diversifying its manufacturing sector and reducing poverty. FDI has also helped Cambodia to increase its foreign exchange reserves from US$3 billion in 2013 to more than US$9 billion in 2017.
As a small but open economy, the trade exchange with foreign countries plays an important role in developing Cambodia's economy.
Cambodia has so far established trade relations with more than 150 countries and territories across the world and has actively participated in multilateral activities to take full advantage of the support of the international community and financial institutions including the WB, the International Monetary Fund (IMF), and the Asian Development Bank (ADB) which help Cambodia to connect with regional and global production networks and value chains.
Besides its achievements in economic development, Cambodia has been highly praised by the international community for its rapid poverty reduction over the past decade, under which the country's poverty rate dropped from 53.5% in 2004 to 13% in 2016. The Southeast Asian country had already met the Millennium Development Goals on poverty reduction ahead of its 2015 deadline.
From a poor country suffering from the genocidal Khmer Rouge regime, Cambodia became a low-middle-income country according to the World Bank's ranking. Cambodia's per capita GDP rose from US$288 in 2000 to US$1,427 in 2017. The country is also expected to become a high-middle-income country by 2030.
The Angkor relic complex attracts a large number of visitors (Photo: Truong Son)
The "Killing Field" times have passed into history and the face of the "Tower Temple Country", especially the capital Phnom Penh and many urban centres is changing rapidly. In 2017 alone, 3,052 construction projects were licensed nationwide with a total value of over US$6.4 billion, an increase of 22% over 2016.
The economic achievements of Cambodia have visibly reflected the support and trust of the Cambodian people for the implementation of the Political Platform and the Quadrangle Strategy (the third phase) of the Cambodian Government (the fifth term) under the leadership of Prime Minister Samdech Hun Sen.
Under the visionary rule of King Norodom Sihamoni and the leadership of the Royal Government of Cambodia governed by the CPP, the Cambodian people will overcome all difficulties and challenges to continue to gain greater achievements in the cause of national construction and development.
