The economy of Cambodia has been growing at a steady pace in recent years, thanks in large part to the government's efforts to promote economic development and foreign investment. The country's GDP has been growing at an average rate of around 7% per year over the past two decades making it one of the fastest-growing economies in the world.
One of the main drivers of economic growth in Cambodia has been the garment and textile industry. This sector accounts for around 80% of Cambodia's exports, and it is a major employer for many Cambodians. The industry has benefited from the country's low cost of labor and its preferential access to global markets through various trade agreements. Additionally, the government has implemented policies to attract foreign investment and technology transfer to the sector, which is helping to improve the competitiveness of Cambodian garments and textiles.
Another important sector of the Cambodian economy is tourism. The country has a rich cultural heritage and a wide range of natural attractions, making it a popular destination for tourists. In recent years there have been large investments in infrastructure and promoting the tourism industry as a key driver of economic growth. As a result, the number of tourists visiting Cambodia grew rapidly before the pandemic. Recently both domestic and international tourism has began to boom once more.
The construction and real estate sector is also a growing contributor to the Cambodian economy. As the country's population grows and urbanizes, the demand for housing and commercial space is increasing. Cambodia has been implementing policies to encourage foreign investment in the sector, and this is helping to spur growth in the construction industry.
The agriculture sector is another important part of the Cambodian economy. The country has a large amount of arable land and a favourable climate for growing a variety of crops, including rice, rubber, cassava, and sugar. However, the agriculture sector is still facing a lot of challenges such as low productivity, lack of some modern technology, and limited access to credit. The government is working on various initiatives to address these issues, to help improve the sector's competitiveness and productivity.
Overall, the Cambodian economy has been growing at a blistering pace for nearly two decades and is expected to continue to grow in the future. The government's efforts to promote economic development and foreign investment, as well as the country's growing population, are helping to drive growth in various sectors, including garments and textiles, tourism, construction, and agriculture.