Cambodia is on the verge of economic prosperity that will take place in case of saving the constant demand for goods exporting from country. In the first quarter 2014 the economic growth made up 7,6 per cent and it is inclined to increase more under current circumstances.
However, the grounds for present growth are the result of a recovery after the global economic downturn in 2008 and record-breaking low 0,1 per cent of GDP growth in 2010. The main incentives for optimistic forecast are the strong exports, direct foreign investments in developing industries and agricultural sector. The last underpinned total growth by increase in rice prices in global markets.
Another factor underscoring the potential of Cambodia economic engine is the fall of poverty that decreased half the size. However, at another hand, people’s proceeds let them to do so by a small margin. Thus, the poverty rate is 20,5 per cent making approximately 2,8 million people live below the poverty line, besides 90 per cent of them live in the countryside.
The fields where government has leapt a lot of hurdles and achieved some improvements are: maternal health, early child care, and primary education programs in rural areas. The state of Cambodia also should pay heed to next problems undermining the development of country, such as effective management of land, natural resources, environmental sustainability, corruption, poor public service and government transparency.
Find out more! Look at High School Summer Science Programs.
The economic areas where Cambodia will succeed in, are:
01The garment industry that equates 80% of the country's exports. In 2013, the exports grew to $5.01 billion up 9% over 2013. In the first half of 2014, the garment industry reported exports worth $1.56 billion.The sector employs 335,400 workers, of which 91% are female. The GDP of Cambodia is about $17 billion and the contribution of garment industry is, undoubtedly, fundamental.
02Tourism and gambling industry made up $1.594 billion revenue in 2013. The demand for exotic tours in USA and EU is inclined to increase; therefore, the tendency for increment in these areas in 2014 will save.
03In addition, direct foreign investments were raised in order to improve the construction. In 2014 the turnover of construction area made up $2.1 billion. The total number of projects completed in 2014 is 1,694.
04Oil and natural gas deposits brought $200 million to Cambodia budget. In the near future the deposits will be developed bringing new money to budget of country.
Do you have other ideas about cambodia economic growth? Share your thoughts in the comments section below.