Kingdom of CambodiaInstructor: Ho Varabott

International Economics and Finance

Paññāsāstra University of Cambodia

Group members

PHENG CHANDARA ID: 40445

NAV POURTCHHORPORNRAINGSEY ID: 35618

Contents

1) Macro Economics Overview2) Political Situation3) GDP Breakdown (Y = C + I + G + NX)4) International Trade (NX)5) Public Finance6) Central Bank Overview7) Credit Ratings

1. Macroeconomic Overview

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

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

c. Primary vs Secondary vs Tertiary

55.80%16.90%

27.30%

Labor Force - by occupation (2010 est.)

AgricultureIndustryServices

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

c. Primary vs Secondary vs Tertiary (Con’t)

34.80%

24.50%

40.70%

GDP - composition, by sector of origin (2013 est.)

AgricultureIndustryServices

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

2. Political Situation

a. Current Situation

• In 2013, there was an agreement in legislating law of National Election, which asabout two-third policy changed to %50+1 , therefore the political party obtainmore that 50% are able to from a government, and leader of that party will bethe 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) hasbeen accused by Opposition Party (CNRP=Cambodian Nation Rescue Party) thatCPP stole the National Election results which was not reflecting civilians’ needs,CPP has power on pointing National Election Committees (NEC) to do so, andunfair election with clashes should not accepted.

• One of the main reasons was Vietnamese, or Vietnamese-Cambodian residentswho have lived in Cambodia for ages were able to vote in significant amountnotably.

• Second reason is a huge different result between CNRP, and CPP collected. Asofficial results claimed that CPP won, Cambodia has been dropped to the errorsof political consistency and social instability again.

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

74.7

7.7

16.42.1-0.9

GDP - composition, by end use (2013 est.)

Household ConsumptionGovernment ConsumptionInvestment in Fixed CapitalInvestment in InventoriesNet Exports & Imports

Source: https://www.cia.gov/library/publications/the-world-factbook/geos/cb.html

a. GDP Breakdown

4. International Trade (NX)

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).

b. Cambodia Imported from Top 10 Countries (2012)

Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

c. Cambodia Imported Top 10 Products 2012

Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

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).

e. Cambodia Exported to Top 10 Countries (2012)

Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

f. Cambodia Exported Top 10 Products 2012

Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

5. Public Finance

a. Government’s Spending

Ministry of Economy and Finance: General Department of Budget, Budget Formulation Department

State Expenditure 2014

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

b. Deficit or Surplus

Source: http://www.tradingeconomics.com/cambodia/cash-surplus-deficit-percent-of-gdp-wb-data.html

c. Current Account

• Cambodia recorded a Current Accountdeficit of 489.20 USD Million in thefourth quarter of 2013. Current Accountin Cambodia averaged -210.59 USDMillion from 2009 until 2013, reachingan all time high of 374.40 USD Million inthe third quarter of 2010 and a recordlow of -531.20 USD Million in the secondquarter of 2013. Current Account inCambodia is reported by the NationalBank of Cambodia.

Source: http://www.tradingeconomics.com/cambodia/current-account

c. Current Account (Con’t)

• Cambodia recorded a Current Accountdeficit of 8.60 percent of the country'sGross Domestic Product in 2013. CurrentAccount to GDP in Cambodia averaged -4.35 Percent from 1994 until 2013,reaching an all time high of 0.61 Percentin 1997 and a record low of -9 Percent in2012. Current Account to GDP inCambodia is reported by the NationalBank of Cambodia.

Source: http://www.tradingeconomics.com/cambodia/current-account-to-gdp

d. Balance of Payment

Source: NBC “Annual Report 2012”

e. % of GDP

Source: http://www.moc.gov.kh/Graphs/StatisticGraphs.aspx?MenuID=48

e. % of GDP (Con’t)

Source: http://en.wikipedia.org/wiki/Regional_Comprehensive_Economic_Partnership

f. Key Fiscal Policy on Consumer

FiscalPolicy onConsumer

Direct Tax IndirectTax

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

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

6. Central Bank Overview

a. History on Currency

a. History on Currency (Con’t)

a. History on Currency (Con’t)

a. History on Currency (Con’t)

a. History on Currency (Con’t)

a. History on Currency (Con’t)

b. Organization

Seminar in 2014 ACCESS TO FINANCE

Access to financial services means access to savingfacilities, payments, insurance, loans and other relevantfinancial products and services. No access to these servicesrestricts opportunities to build wealth and to improve livingstandards and economic conditions.

Resource: http://www.nbc.org.kh/English

b. Organization (Con’t)

The Importance Of Financial Stability In PromotingEconomic Growth

The financial sector converts savings to investments,manages risks and mediates payments. With the emergenceof new financial services and products, the financial sectoradvances and becomes more efficient, which in turn canfacilitate more efficient economic transactions and realsector activities. However, this advance also createsgreater risks for both the financial sector and the economy.

Resource: http://www.nbc.org.kh/English/

b. Organization (Con’t)

Balancing The Access To Finance Against Financial StabilityMany fewer people in developing economies have access tofinancial services compared to those in developedcountries. Most of these services are concentrated in urbanareas, leaving the vast majority of low-income householdsin rural areas without adequate support. However, theprovision of services over different regions has beenconverging as more financial institutions expand intoremote areas in Cambodia.

Resource: http://www.nbc.org.kh/English/

c. Interest Rate

Resource: http://www.nbc.org.kh/English/

c. Interest Rate (Con’t)

Resource: http://www.nbc.org.kh/English/

c. Interest Rate (Con’t)

Resource: http://www.nbc.org.kh/English/

d. Foreign Exchange

Resource: http://www.acledabank.com.kh/kh/eng/ps_cmforeignexchange.php

7. Credit Rating

a. Credit Ratings

Source: http://asianbondsonline.adb.org/cambodia.php

Thank for your attention!