Vision

Business Management Review
1- Political and Economic Environment
in 2010
In 2010, Cambodia’s economy has been recovering
following a difficult post-economic crisis period in
2009. Before the crisis, the country experienced to
enjoy its average annual economic growth of 10.2%
from 2005 to 2008 before slightly grow at the rate
of 0.1% in 2009 when Cambodia was strongly hit
by world financial crisis. Being highly reliant on
world economy, Cambodia’s economy has started
recovering in 2010 in line with global economic
recovery. The economic grew at the rate of 5.5% in
2010 due to rebound in agriculture, agro-industry,
garment, and tourism sector which are the main
pillars driving economic growth. Gross GDP is about
US$ 11,315 million and per capital income is US$
788 in 2010.
Inflation was at moderate and manageable level-
3.1% in December 2010 over December 2009. The
annual inflation is estimated to be about 4% in 2010.
The Riel exchange rate was remarkably fluctuated
within the year- sharply depreciated in the mid-year
to be 4,241 Riels per US$ and instantly appreciate
back to be 4,050 Riels per US$ at the end of the
year. The fall and rise of Riel’s value was mainly
resulted from seasonal fluctuation and instability
of US$’s value. Cambodia’s financial and banking
sector remains strong and healthy. Liquidity in
the banking sector has increased, due to increase
deposit faster than credit allocation for economic
activities. The sector’s development has supported
the economic growth in all areas of the Kingdom.
Agriculture grew continuously even during and
after the crisis. In 2010, the sector grew by
4.5% due to high priority given by the Royal
Government of Cambodia to grow the sector. The
rice export increased by around 45% in 2010 over
the corresponding period in 2009, benefited from
the recent rice production and export promotion
policy of the government. Manufacturing and agroindustry
sectors continue to grow. The garment
sector which was severely affected by the 2009
crisis grew by approximately 30% in 2010. Tourism
sector also has a high potential for growth. The
tourist arrivals in Cambodia increased by 16% to be
2.5 million tourists in 2010.
Along with the world economic recovery, Cambodia
economy is expected to further accelerate in
2011. The government, international development
agencies and research institutes forecast the
economic growth within the range from 6% to 7%.
The better economic performance in 2011 is driven
by an improvement of paddy sector, a significant
recovery of garment industry, a continued growth
momentum in the agro-industry, and enhanced
performance in the service sector.
Key Economic Indicator
Key Economic Indicator 2011f 2010e 2009 2008 2007
Growth and Consumer Prices
GDP Growth (% change, yoy) 6.0 5.5 0.1 6.7 10.2
Nominal GDP (US$ million) 12,538 11,315 10,391 10,286 8,754
GDP per Capita (US$) 861 788 739 739 593
Consumer Price Index (% change, yoy) 4.0 4.0 5.3 12.5 14.0
Trade and Investment
Export(US$ million) 5,689 4,947 4,196 4,708 4,088
Import(US$ million) 7,040 6,384 5,830 6,508 5,432
Foreign Direct Investment (US$ million) 666 553 511 795 866
Microfinance Institution “Amret” Annual Report 2010 12