Economic Conditions
When looking into Cambodia’s economic welfare we found out that “Despite recent progress, the Cambodian economy continues to suffer from the legacy of decades of war and internal strife and Cambodia remains one of the least developed countries.” Cambodia relies heavily on assistance from other countries especially Japan. Cambodia has gone through several civil wars which have hurt the country in many ways with their development. “Growth accelerated in the late 1980s with the government's gradual move towards free market economic policies. Growth was propelled further during 1991-1993 by the UN presence in Cambodia.” Cambodia has shown improvements since all the civil wars have ended and will continue to show improvements till the country reaches a better economic situation in the coming years. Cambodia is not a great place to want to start a company unless it had to do with the garment business or the agriculture business because that is the majority of the countries income. Cambodia is becoming a more stable country but it still has a way to go before it can be relied on by other countries. With the population being so young there that “…more than 50% of the population is less than 21 years old. The population lacks education and productive skills…” Which make it difficult for the country to succeed because of the lack of infrastructure. Once economic conditions improve in Cambodia then I can see more companies transitioning over there and creating more jobs to help make a difference and get Cambodia on its own feet. Tourism has played a big part as of late with more people coming and visiting Cambodia it has helped them financially and it is now something the country relies on as income and the real estate market has developed into a better situation as well since the country has improved over the years. Cambodia is still heavily reliant on foreign assistance that half of the government’s budget depends on donor assistance. This Past year Cambodia’s economy has fared pretty well and is growing thanks in large part that the “Garment industry, tourism, and agriculture are doing very well.” With that being said Cambodia has been seeing growth in all its sectors the past couple of years which show the country is on the rise. The overall macroeconomic outlook has been very positive “During the first six months of 2013, garment exports accelerated further, growing at 18 percent year-on-year, while the tourism sector continues its high growth trajectory, with a tourist arrival growth rate of 19 percent year-on-year” The GDP has also risen about 7% this past year soon enough “The country will move from the status of a low-income to a lower-middle income nation in the near future.” When the country starts growing and becoming more stable that’s when it will be the time for more companies to invest into the Cambodia market.

Works Cited

"Cambodia Economic Situation." ASEAN. N.p., 14 Jan. 2009. Web. 25 Apr. 2014. <http://www.asean.fta.govt.nz/cambodia-economic-situation/>.

"Cambodia economy remains robust in 2013 amidst challenging global economic atmosphere: WB." Gloabal Times. Xinhua, 7 Oct. 2013. Web. 25 Apr. 2014. <http://www.globaltimes.cn/content/815853.shtml#.U1qW9dEU85s>.