Cambodia has experienced rapid economic growth over the last decade and at the start of 2020 was the sixth fastest growing country in the world. GDP has grown by around 7% for the past ten years and this rate is expected to continue. While still very low, Cambodia’s GDP reached US$ 1,621 in 2019 and the country moved out of the low-income level to lower-middle income as measured by World Bank rankings. It is however still one of the poorest countries in the region, with over 25% of the national budget dependent on development aid. The country poses significant challenges as a market, with a weak judicial system, poor infrastructure, high energy costs, serious issues with corruption and an agrarian population with a low education level.
The COVID-19 pandemic has caused challenges for Cambodia, putting the country’s growth rate into negative figures in 2020, Around 500,000 Cambodians have returned home from working abroad, losing the income from foreign remittances, while adding to unemployment figures. However, growth appears to have resumed again in 2021, with figures of between 1.3 - 4.2% cited from different sources. (UNESCAP.org, Dec. 2020).
