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
@Cambodia:Economy
Economy-overview: After four years of solid macroeconomic performance, Cambodia's economy slowed dramatically in 1997 due to the twin shocks of the regional economic crisis and the July violence and political infighting. Economic growth fell from 6.5% in 1996 to 1.5% in 1997, foreign investment slowed, and tourism declined 16% from 1996 levels. Despite these difficulties, inflation accelerated only slightly to 9.5%; the government managed to keep the national budget in balance even with increased expenditures on the military and police; and the economy ran a small balance of payments surplus. The future payments could be adversely affected by the currency crises in Thailand, Malaysia, and Indonesia, which tends to make Cambodia's exports more expensive at the same time imports from these countries become cheaper. The long-term development of the economy after decades of war remains a daunting challenge. Human resource levels in the population are low, particularly in the poverty-ridden countryside. The almost total lack of basic infrastructure in the countryside will continue to hinder development. Recurring political instability hinders foreign investment. Corruption and inexperience among Cambodia's government officials will serve as a further drag on the economy.
GDP: purchasing power parity-$7.7 billion (1997 est.)
GDP-real growth rate: 1.5% (1997 est.)
GDP-per capita: purchasing power parity-$715 (1997 est.)
GDP-composition by sector: agriculture: 47.3% industry: 15.4% services: 37.3% (1996 est.)
Inflation rate-consumer price index: 9.5% (1997 est.)
Labor force: 2.5 million to 3 million by occupation: agriculture 80% (1997 est.)
Unemployment rate: NA%