Flag description: three horizontal bands of blue (top), red (double width), and blue with a white three-towered temple representing Angkor Wat outlined in black in the center of the red band
Economy
Economy - overview: The Cambodian economy - virtually destroyed by decades of war - is slowly recovering. Government leaders are moving toward restoring fiscal and monetary discipline and have established good working relations with international financial institutions. Growth, starting from a low base, has been strong in 1991-96. Despite such positive developments, the reconstruction effort faces many tough challenges because of the persistence of internal political divisions and the related lack of confidence of foreign investors. Rural Cambodia, where 90% of about 9.5 million Khmer live, remains mired in poverty. The almost total lack of basic infrastructure in the countryside will hinder development and will contribute to a growing imbalance in growth between urban and rural areas over the near term. Moreover, the government's lack of experience in administering economic and technical assistance programs and rampant corruption among officials will slow the growth of critical public sector investment. The decline of inflation from the 1992 rate of more than 50% is one of the bright spots.
GDP: purchasing power parity - $7.7 billion (1996 est.)
GDP - real growth rate: 7.4% (1996 est.)
GDP - per capita: purchasing power parity - $710 (1996 est.)
GDP - composition by sector: agriculture : 51% industry: 14% services: 35%
Inflation rate - consumer price index: 5% (1996 est.)
Labor force: 2.5 million to 3 million by occupation : agriculture 80% (1996 est.)
Unemployment rate: NA%