24 From 2004 to 2007, the economy of Cambodia grew by about 10% per year, driven largely by an expansion in the garment sector, construction, agriculture, and tourism. Growth dropped to below 7% in 2008 as a result of the global economic slowdown. The Gross Domestic Product (GDP) in Cambodia expanded 7 percent in 2014 from the previous year. Japan, China and South Korea are the three main investors in Cambodia. China is Cambodia’s biggest source of foreign direct investment. We show the main economic performance indicators from 2009 in the table below. TABLE №8 MAIN ECONOMIC INDICATORS--CAMBODIA (2008-2014) 2009 2010 2011 2012 2013 2014 Population, million. [1] 14.8 14.1 14.3 14.5 14.7 14.8 Nominal GDP, US $ [1] 7.3 11 13.3 14.5 15.9 18.3 GDP per capita, US $ [2] 490 776 932 1,001 1,084 1,231 Real GDP growth, % change y-o-y [1] -2 5.9 7.1 7.3 6.0 6.4 Consumer Price, % y-o-y, ave [3] 5.3 3.1 5.5 5.0 4.8 4.2 Lending rate, %, eop [3] 15.7 15.5 15.2 15.0 14.8 14.5 Exchange rate KHR/US $, eop [3] 4,145 4,053 4,039 4,300 4,150 4,000 Exports, US $bn [3] 3.6 5.1 6.2 7.1 8.2 9.2 Trade balance, US $ bn [3] -1.4 -1.7 -0.9 -1.8 -0.8 -1.0 Current account, % of GDP [4] -8.2 -8.2 -7.1 -5.4 -5.3 -5.3 Forex reserves (- gold), US $bn [3] 2.8 3.3 3.3 3.5 3.7 3.9 Import cover, months [4] 6.5 5.8 5 4.7 4.4 4.2 Foreign debt, % of GDP [5] 64.4 47.4 43.8 45.1 45.3 42.9 Sources: 1 National Institute of Statistics; 2 National Institute of Statistics/BMI Calculations; 3 IMF; 4 World Bank/UN/BMI; 5 National Bank of Cambodia/BMI. Cambodia is also getting more and more profit from a fast growing tourism sector with the number of foreign arrivals approximately 4.5 million in 2014, an increase of 12.5 percent compared to 2013. More importantly, oil deposits found beneath Cambodia’s territorial waters and the prospective exploration of mineral resources (bauxite, gold, iron and gems) will likely reshape Cambodia’s economy. Some of the obstacles faced by this emerging economy are the need for a better education system and the lack of a skilled workforce; particularly in the poverty-ridden countryside, which struggles with inadequate basic infrastructure. Nonetheless, Cambodia continues to attract investors because of its low wages, plentiful labor, proximity to Asian raw materials, and favorable tax treatment.
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