Cambodia Economic Growth Overview

Cambodia’s economy grew rapidly, at more than 8 percent per year, between 2004 and 2012. GDP growth slowed during the global economic downturn in 2008-09 and then picked up again to reach a four-year high of 7.3 percent in 2012.  The economy is expected to grow at around 7 percent in 2013, driven by strong exports, private investment and agriculture, and underpinned by a solid macroeconomic position. Economic growth broadened over the past few years, thanks to sustained growth in the agricultural sector, driven by increases in rice prices in global markets.

Poverty in Cambodia has fallen sharply. World Bank estimates suggest that Cambodia achieved the Millennium Development Goal (MDG) of halving poverty in 2009. However, a vast majority of families who were lifted out of poverty were only able to do so by a small margin. Today, the poverty rate is 20.5 percent. Still about 2.8 million people are poor, and about 90 percent of them live in the countryside.

Cambodia has made good strides in improving maternal health, early child care, and primary education programs in rural areas. The number of deaths per 100,000 live births decreased from 472 in 2005 to 206 in 2010, the under-five child mortality rate decreased from 124 per 1,000 live births in 1998 to 54 in 2010, and the net primary school admission rate increased from 81 in 2001 to 94.3 in 2012.

Cambodia has also been successful in HIV/AIDS prevention and treatment. As of 2011, 95 percent of people infected with HIV/AIDS in Cambodia have access to antiretroviral treatment. This coverage rate is among the highest in the developing world.

Cambodia still faces a number of development challenges, including effective management of land and natural resources, environmental sustainability, and good governance. Corruption and poor public service delivery impede inclusive development.

(Source: World Bank)