The overall recent economic performance has been characterized by balanced contributions from agriculture, manufacturing, construction, tourism and services. Despite the global downturn, the Cambodia economy has been in good shape underpinned by a continued increase in investment in agriculture, broad base development of non-agriculture sectors, political stability, active private sector participation, reform efforts, increased official development aids and sustained foreign direct investment. The GDP growth in 2009 remained in the positive, 0.1 percent (IMF -1.96 percent), while the growth in 2010 is consensus expected to be around 6% percent.
The primary sector, producing about a third of GDP, grew by an estimated 4.2% in 2010. Paddy rice output rose by about 5% to 7.9 million tons and livestock production increased by about 5.5%.
Recovery in global travel saw tourist arrivals rise by about 16% to 2.5 millions, and tourism receipts by 14.5% to $1.78 billion. Industry was the main contributor to GDP growth in 2010, expanding by an estimated 11.6% (it had contracted in 2009).Construction activity remained sluggish, reflecting a fall in foreign investment in property during the global crisis and slow pickup in residential building.
A less expansionary fiscal stance saw the overall budget deficit trimmed to an estimated 6.0% of GDP, from 6.4% in 2009. Domestic revenue bounced back to the equivalent of 12.7% of GDP, higher than the budget plan of 12.3% and the 2009 outturn of 11.9%.Government expenditure amounted to an estimated 18.6% of GDP, somewhat above the 17.6% budget target but lower than the 2009 peak of 20.5%.
Consistent with a modest recovery in domestic demand, inflation in2010 averaged 4.0%, a turnaround from 2009 when the consumer price index fell slightly.
In the external accounts, merchandise exports rose by an estimated 20.8% in US dollar terms, largely reflecting growth in garment exports to the US. Imports rose by an estimated 15.9%, mainly on increases in oil and in raw materials for garments. Overall, the 2010 current account deficit (excluding official transfers) narrowed slightly to an estimated 11.0% of GDP.
Foreign direct investment inflows rose by about 50% to $801 million, reflecting strong growth in agriculture and garments. Donor inflows remained buoyant, and gross international reserves increased by 12% over the year to $2.65 billion, equivalent to 4.7 months of imports of goods.