This document provides an overview of Cambodia's macroeconomics, politics, international trade, public finance, and central banking. It discusses Cambodia's GDP growth, demographics, labor force breakdown, political situation, GDP components, top import/export partners and products, government spending, fiscal policies, central bank history and functions, interest rates, and credit ratings. Key points include 7.2% GDP growth in 2013, a population of 14.15 million, agriculture as the largest employment sector, recent national elections, trade surplus with the US, budget allocation to social/defense sectors, and the central bank's role in monetary policy.

1. Kingdom of Cambodia
Instructor: Ho Varabott
International Economics and Finance
Paññāsāstra University of Cambodia

2. Group members
 PHENG CHANDARA ID: 40445
 NAV POURTCHHORPORNRAINGSEY ID: 35618

3. Contents
1) Macro Economics Overview
2) Political Situation
3) GDP Breakdown (Y = C + I + G + NX)
4) International Trade (NX)
5) Public Finance
6) Central Bank Overview
7) Credit Ratings

4. 1. Macroeconomic Overview

5. a. Main indicators
GDP Growth 2013 (est.) 7.20%
GDP per Capita 2013 (est.) $709.18
Population 2013 (est.) 14.15 millions
Inflation Rate (April, 2014 est.) 4.90%
Exchange Rate (July, 2014 est.) KHR/USD = 4045.00
Source: http://www.tradingeconomics.com/cambodia/indicators

6. b. Demographics
Source: http://www.theodora.com/wfbcurrent/cambodia/cambodia_people.html
Ethnic Groups (January, 2014)
Khmer (90%), Vietnamese (5%), Chinese
(1%), Other (4%)
Birth Rate (2013 est.) 24.88 births/1,000 population
Death Rate (2013 est.) 7.88 deaths/1,000 population
Net Migration Rate (2013 est.) -0.33 migrant(s)/1,000 population

7. c. Primary vs Secondary vs Tertiary
55.80%
16.90%
27.30%
Labor Force - by occupation (2010 est.)
Agriculture
Industry
Services
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

8. c. Primary vs Secondary vs Tertiary (Con’t)
34.80%
24.50%
40.70%
GDP - composition, by sector of origin (2013 est.)
Agriculture
Industry
Services
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

9. 2. Political Situation

10. a. Current Situation
• In 2013, there was an agreement in legislating law of National Election, which as
about two-third policy changed to %50+1 , therefore the political party obtain
more that 50% are able to from a government, and leader of that party will be
the only one prime minister.
• The most recent National Election in 2013, CPP seemed to be less supporters,
dropped from 90 seats to 68 seats, and also CPP (Cambodian People Party) has
been accused by Opposition Party (CNRP=Cambodian Nation Rescue Party) that
CPP stole the National Election results which was not reflecting civilians’ needs,
CPP has power on pointing National Election Committees (NEC) to do so, and
unfair election with clashes should not accepted.
• One of the main reasons was Vietnamese, or Vietnamese-Cambodian residents
who have lived in Cambodia for ages were able to vote in significant amount
notably.
• Second reason is a huge different result between CNRP, and CPP collected. As
official results claimed that CPP won, Cambodia has been dropped to the errors
of political consistency and social instability again.

11. 3. GDP Breakdown (Y = C + I + G + NX)

12. 74.7
7.7
16.4
2.1-0.9
GDP - composition, by end use (2013 est.)
Household Consumption
Government Consumption
Investment in Fixed Capital
Investment in Inventories
Net Exports & Imports
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html
a. GDP Breakdown

13. 4. International Trade (NX)

14. a. Cambodia Imported from Top 10 Countries
2012
Thailand 4141.9 million us dollars
China 2976.8 million us dollars
Viet Nam 3044.6 million us dollars
Hong Kong, China 891.6 million us dollars
Singapore 1087.2 million us dollars
Korea 652.6 million us dollars
Indonesia 321.4 million us dollars
Malaysia 273.9 million us dollars
United States 248.8 million us dollars
Japan 257.5 million us dollars
Source: databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=International%20Debt%20Statistics# (downloaded May 2013).

15. b. Cambodia Imported from Top 10 Countries (2012)
Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

16. c. Cambodia Imported Top 10 Products 2012
Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

17. d. Cambodia Exported from Top 10 Countries
2012
United States 2545.2 million us dollars
Hong Kong, China 61.2 million us dollars
Canada 599.2 million us dollars
Singapore 517.6 million us dollars
United Kingdom 651.0 million us dollars
Germany 601.7 million us dollars
Viet Nam 449.1 million us dollars
Japan 367.7 million us dollars
Netherlands 85.4 million us dollars
Spain 185.4 million us dollars
Source: databank.worldbank.org/Data/Views/VariableSelection/SelectVariables.aspx?source=International%20Debt%20Statistics# (downloaded May 2013).

18. e. Cambodia Exported to Top 10 Countries (2012)
Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

19. f. Cambodia Exported Top 10 Products 2012
Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

20. 5. Public Finance

21. a. Government’s Spending
Ministry of Economy and Finance: General Department of Budget, Budget Formulation Department
State Expenditure 2014

22. a. Government’s Spending (Con’t)
Ministry of Economy and Finance: General Department of Budget, Budget Formulation Department
State Expenditure by Sector: 2012-2013 ( Million Riels )
Sectors 2012 2013
Current expenditure 6.857.919 7.489.296
General admin sector 1.170.548 1.150.824
Defense & security sector 1.470.920 1.655.199
Social sector 2.292.866 2.733.183
Economic sector 525.955 615.419
Others 1.217.039 1.019.093
Province 450.238 444.253
Capital expenditure 5.485.280 4.999.907
Domestic expenditure 1.525.190 1.853.907
Foreign expenditure 3.960.090 3.146.000
Total 12.343.199 12.489.203

23. b. Deficit or Surplus
Source: http://www.tradingeconomics.com/cambodia/cash-surplus-deficit-percent-of-gdp-wb-data.html

24. c. Current Account
• Cambodia recorded a Current Account
deficit of 489.20 USD Million in the
fourth quarter of 2013. Current Account
in Cambodia averaged -210.59 USD
Million from 2009 until 2013, reaching
an all time high of 374.40 USD Million in
the third quarter of 2010 and a record
low of -531.20 USD Million in the second
quarter of 2013. Current Account in
Cambodia is reported by the National
Bank of Cambodia.
Source: http://www.tradingeconomics.com/cambodia/current-account

25. c. Current Account (Con’t)
• Cambodia recorded a Current Account
deficit of 8.60 percent of the country's
Gross Domestic Product in 2013. Current
Account to GDP in Cambodia averaged -
4.35 Percent from 1994 until 2013,
reaching an all time high of 0.61 Percent
in 1997 and a record low of -9 Percent in
2012. Current Account to GDP in
Cambodia is reported by the National
Bank of Cambodia.
Source: http://www.tradingeconomics.com/cambodia/current-account-to-gdp

26. d. Balance of Payment
Source: NBC “Annual Report 2012”

27. e. % of GDP
Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

28. e. % of GDP (Con’t)
Source: http://en.wikipedia.org/wiki/Regional_Comprehensive_Economic_Partnership

29. f. Key Fiscal Policy on Consumer
Fiscal
Policy on
Consumer
Direct Tax Indirect
Tax

30. Direct tax refers to tax payer means person who pay tax directly to tax office.
f. Key Fiscal Policy on Consumer (Con’t)
Tax % Tax
Corporate Tax Rate 20%
Personal Income Tax Rate 20%
Source: http://www.tradingeconomics.com/cambodia/corporate-tax-rate

31. Indirect tax refers to taxable person means person who pay tax indirectly.
f. Key Fiscal Policy on Consumer (Con’t)
Tax % Tax
Sales Tax Rate 10%
Source: http://www.tradingeconomics.com/cambodia/corporate-tax-rate

32. 6. Central Bank Overview

33. a. History on Currency

34. a. History on Currency (Con’t)

35. a. History on Currency (Con’t)

36. a. History on Currency (Con’t)

37. a. History on Currency (Con’t)

38. a. History on Currency (Con’t)

39. b. Organization
 Seminar in 2014
 ACCESS TO FINANCE
Access to financial services means access to saving
facilities, payments, insurance, loans and other relevant
financial products and services. No access to these services
restricts opportunities to build wealth and to improve living
standards and economic conditions.
Resource: http://www.nbc.org.kh/English

40. b. Organization (Con’t)
 The Importance Of Financial Stability In Promoting
Economic Growth
The financial sector converts savings to investments,
manages risks and mediates payments. With the emergence
of new financial services and products, the financial sector
advances and becomes more efficient, which in turn can
facilitate more efficient economic transactions and real
sector activities. However, this advance also creates
greater risks for both the financial sector and the economy.
Resource: http://www.nbc.org.kh/English/

41. b. Organization (Con’t)
 Balancing The Access To Finance Against Financial Stability
Many fewer people in developing economies have access to
financial services compared to those in developed
countries. Most of these services are concentrated in urban
areas, leaving the vast majority of low-income households
in rural areas without adequate support. However, the
provision of services over different regions has been
converging as more financial institutions expand into
remote areas in Cambodia.
Resource: http://www.nbc.org.kh/English/

42. c. Interest Rate
Resource: http://www.nbc.org.kh/English/

43. c. Interest Rate (Con’t)
Resource: http://www.nbc.org.kh/English/

44. c. Interest Rate (Con’t)
Resource: http://www.nbc.org.kh/English/

45. d. Foreign Exchange
Resource: http://www.acledabank.com.kh/kh/eng/ps_cmforeignexchange.php

46. 7. Credit Rating

47. a. Credit Ratings
Source: http://asianbondsonline.adb.org/cambodia.php

48. Thank for your attention!