Economy
GDP (2006 est.): $6.6 billion.
Per capita GDP (2005): $448.
Annual growth rate (2006): 10.5%.
Inflation (2006): 5%.
Natural resources: Timber, gemstones, some iron ore, manganese and phosphate, hydroelectric potential from the Mekong River.
Agriculture (34.2% of GDP, 2005): About 4,848,000 hectares (12 million acres) are unforested land; all are arable with irrigation, but 2.5 million hectares are cultivated. Products--rice, rubber, corn, meat, vegetables, dairy products, sugar, flour.
Industry (26.7% of GDP, 2005): Types--garment and shoe manufacturing, rice milling, tobacco, fisheries and fishing, wood and wood products, textiles, cement, some rubber production, paper and food processing.
Services (39.1% of GDP, 2004 est.): Tourism, telecommunications, transportation, and construction.
Central government budget (2005): Revenues--$642 million; expenditures--$812 million; foreign financing--$273 million.
Trade: Exports ($3.45 billion, 2006)--garments, shoes, cigarettes, natural rubber, rice, pepper, wood, fish. Major partners--United States, Germany, U.K., Singapore, Japan, Vietnam. Imports ($3.31 billion, 2006)--fuels, cigarettes, vehicles, consumer goods, machinery. Major partners--Thailand, Singapore, China, Hong Kong, Vietnam, Taiwan, United States.
Economic aid received: Pledges of $601 million in grants and concessional loans for calendar year 2006. Major donors--Asian Development Bank (ADB), UN Development Program (UNDP), World Bank, International Monetary Fund, Australia, Canada, Denmark, the EU, France, Germany, Italy, Japan, Sweden, Thailand, U.K., U.S. According to the Cambodian Government, 95.2% of the $504 million pledged by donors for 2005 was actually disbursed.
Principal foreign commercial investors: Malaysia, Taiwan, U.S., China, Korea, Hong Kong, Singapore, and Thailand.
Exchange rate (2006): 4,114 riel per U.S. $1.

GEOGRAPHY
Cambodia is located on mainland Southeast Asia between Thailand to the west and north and Vietnam to the east. It shares a land border with Laos in the northeast. Cambodia has a sea coast on the Gulf of Thailand. The Dangrek Mountain range in the north and Cardamom Mountains in the southwest form natural boundaries. Principal physical features include the Tonle Sap lake and the Mekong and Bassac Rivers. Cambodia remains one of the most heavily forested countries in the region, although deforestation continues at an alarming rate.

CAMBODIA ECONOMY
Since 2004, the economy's growth rate has averaged over 10%, with the garment sector and the growing tourism industry driving the growth. Inflation steadily increased from 1.3% in 2003 to 6.7% in 2005; for 2006, it was 5%. The economy is heavily dollarized; the dollar and riel can be used interchangeably. Cambodia remains heavily reliant on foreign assistance--about half of the central government budget depends on donor assistance. Cambodia has had trouble attracting foreign direct investment (FDI), due in part to the unreliable legal environment. FDI was recorded at $142 million in 2000 and gradually dropped to $121 million in 2004. In 2005, for the first time in five years, FDI increased to $216 million.

Manufacturing output is concentrated in the garment sector, which started to expand rapidly in the mid-1990s and now employs more than 250,000 workers. Garments dominate Cambodia's exports, especially to the U.S., and accounted for over $2 billion in revenues in 2005, a record high. Since the end of the Multi-Fiber Arrangement in 2005, Cambodia has maintained exports, against expectations. The other main foreign currency earner is tourism; in 2004, visitors topped one million for the first time, many of whom visited the ancient Angkor Wat complex at Siem Reap. The service sector is heavily concentrated in trading activities and catering-related services. Exploratory drilling for oil and natural gas began in 2005 and although there are no clear figures, oil production could more than double Cambodia's revenue.

In spite of recent progress, the Cambodian economy continues to suffer from the legacy of decades of war and internal strife. Per capita income and education levels are lower than in most neighboring countries. Infrastructure remains inadequate. Most rural households depend on agriculture and its related subsectors. Corruption and lack of legal protections for investors continue to hamper economic opportunity and competitiveness. The economy also has a poor track record in creating jobs in the formal sector, and the challenge will only become more daunting in the future since 50% of the population is under 20 years of age and large numbers of job seekers will begin to enter the work force each year over the next 10 years.