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Thailand vs. Cambodia

Economy

ThailandCambodia
Economy - overview

With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two thirds of GDP. Thailand's exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.

Over the last few decades, Thailand has reduced poverty substantially. In 2013, the Thai Government implemented a nationwide 300 baht (roughly $10) per day minimum wage policy and deployed new tax reforms designed to lower rates on middle-income earners.

Thailand's economy is recovering from slow growth during the years since the 2014 coup. Thailand's economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. Tourism and government spending - mostly on infrastructure and short-term stimulus measures - have helped to boost the economy, and The Bank of Thailand has been supportive, with several interest rate reductions.

Over the longer-term, household debt levels, political uncertainty, and an aging population pose risks to growth.

Cambodia has experienced strong economic growth over the last decade; GDP grew at an average annual rate of over 8% between 2000 and 2010 and about 7% since 2011. The tourism, garment, construction and real estate, and agriculture sectors accounted for the bulk of growth. Around 700,000 people, the majority of whom are women, are employed in the garment and footwear sector. An additional 500,000 Cambodians are employed in the tourism sector, and a further 200,000 people in construction. Tourism has continued to grow rapidly with foreign arrivals exceeding 2 million per year in 2007 and reaching 5.6 million visitors in 2017. Mining also is attracting some investor interest and the government has touted opportunities for mining bauxite, gold, iron and gems.

 

Still, Cambodia remains one of the poorest countries in Asia, and long-term economic development remains a daunting challenge, inhibited by corruption, limited human resources, high income inequality, and poor job prospects. According to the Asian Development Bank (ADB), the percentage of the population living in poverty decreased to 13.5% in 2016. More than 50% of the population is less than 25 years old. The population lacks education and productive skills, particularly in the impoverished countryside, which also lacks basic infrastructure.

 

The World Bank in 2016 formally reclassified Cambodia as a lower middle-income country as a result of continued rapid economic growth over the past several years. Cambodia's graduation from a low-income country will reduce its eligibility for foreign assistance and will challenge the government to seek new sources of financing. The Cambodian Government has been working with bilateral and multilateral donors, including the Asian Development Bank, the World Bank and IMF, to address the country's many pressing needs; more than 20% of the government budget will come from donor assistance in 2018. A major economic challenge for Cambodia over the next decade will be fashioning an economic environment in which the private sector can create enough jobs to handle Cambodia's demographic imbalance.

 

Textile exports, which accounted for 68% of total exports in 2017, have driven much of Cambodia's growth over the past several years. The textile sector relies on exports to the United States and European Union, and Cambodia's dependence on its comparative advantage in textile production is a key vulnerability for the economy, especially because Cambodia has continued to run a current account deficit above 9% of GDP since 2014.

GDP (purchasing power parity)$1,285,287,000,000 (2019 est.)

$1,255,719,000,000 (2018 est.)

$1,205,674,000,000 (2017 est.)

note: data are in 2010 dollars
$72.356 billion (2019 est.)

$67.588 billion (2018 est.)

$62.89 billion (2017 est.)

note: data are in 2017 dollars
GDP - real growth rate2.62% (2019 est.)

4.31% (2018 est.)

4.26% (2017 est.)
6.9% (2017 est.)

7% (2016 est.)

7% (2015 est.)
GDP - per capita (PPP)$18,460 (2019 est.)

$18,087 (2018 est.)

$17,421 (2017 est.)

note: data are in 2010 dollars
$4,389 (2019 est.)

$4,159 (2018 est.)

$3,928 (2017 est.)

note: data are in 2017 dollars
GDP - composition by sectoragriculture: 8.2% (2017 est.)

industry: 36.2% (2017 est.)

services: 55.6% (2017 est.)
agriculture: 25.3% (2017 est.)

industry: 32.8% (2017 est.)

services: 41.9% (2017 est.)
Population below poverty line9.9% (2018 est.)16.5% (2016 est.)
Household income or consumption by percentage sharelowest 10%: 2.8%

highest 10%: 31.5% (2009 est.)
lowest 10%: 2%

highest 10%: 28% (2013 est.)
Inflation rate (consumer prices)0.7% (2019 est.)

1% (2018 est.)

0.6% (2017 est.)
2.9% (2017 est.)

3% (2016 est.)
Labor force37.546 million (2020 est.)8.913 million (2017 est.)
Labor force - by occupationagriculture: 31.8%

industry: 16.7%

services: 51.5% (2015 est.)
agriculture: 48.7%

industry: 19.9%

services: 31.5% (2013 est.)
Unemployment rate0.99% (2019 est.)

1.06% (2018 est.)
0.3% (2017 est.)

0.2% (2016 est.)

note: high underemployment, according to official statistics
Distribution of family income - Gini index36.4 (2018 est.)

48.4 (2011)
37.9 (2008 est.)

41.9 (2004 est.)
Budgetrevenues: 69.23 billion (2017 est.)

expenditures: 85.12 billion (2017 est.)
revenues: 3.947 billion (2017 est.)

expenditures: 4.354 billion (2017 est.)
Industriestourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts, agricultural machinery, air conditioning and refrigeration, ceramics, aluminum, chemical, environmental management, glass, granite and marble, leather, machinery and metal work, petrochemical, petroleum refining, pharmaceuticals, printing, pulp and paper, rubber, sugar, rice, fishing, cassava, world's second-largest tungsten producer and third-largest tin producertourism, garments, construction, rice milling, fishing, wood and wood products, rubber, cement, gem mining, textiles
Industrial production growth rate1.6% (2017 est.)10.6% (2017 est.)
Agriculture - productssugar cane, cassava, rice, oil palm fruit, rubber, maize, tropical fruit, poultry, pineapples, mangoes/guavascassava, rice, maize, vegetables, sugar cane, soybeans, rubber, oil palm fruit, bananas, pork
Exports$291.169 billion (2019 est.)

$298.968 billion (2018 est.)

$289.239 billion (2017 est.)
$11.42 billion (2017 est.)

$10.07 billion (2016 est.)
Exports - commoditiesoffice machinery/parts, cars and vehicle parts, integrated circuits, delivery trucks, gold (2019)clothing, precious metal scraps, trunks/cases, gold, leather footwear (2019)
Exports - partnersUnited States 13%, China 12%, Japan 10%, Vietnam 5% (2019)United States 21%, Singapore 8%, Thailand 8%, Germany 7%, Japan 6%, China 5%, Canada 5%, United Kingdom 5% (2019)
Imports$257.873 billion (2019 est.)

$269.455 billion (2018 est.)

$248.698 billion (2017 est.)
$14.37 billion (2017 est.)

$12.65 billion (2016 est.)
Imports - commoditiescrude petroleum, integrated circuits, natural gas, vehicle parts, gold (2019)refined petroleum, clothing, gold, cars, flavored water (2019)
Imports - partnersChina 22%, Japan 14%, United States 7%, Malaysia 6% (2019)China 27%, Thailand 25%, Vietnam 15%, Singapore 8% (2019)
Debt - external$167.89 billion (2019 est.)

$158.964 billion (2018 est.)
$11.87 billion (31 December 2017 est.)

$10.3 billion (31 December 2016 est.)
Exchange ratesbaht per US dollar -

30.03 (2020 est.)

30.29749 (2019 est.)

32.8075 (2018 est.)

34.248 (2014 est.)

32.48 (2013 est.)
riels (KHR) per US dollar -

4,055 (2017 est.)

4,058.7 (2016 est.)

4,058.7 (2015 est.)

4,067.8 (2014 est.)

4,037.5 (2013 est.)
Fiscal year1 October - 30 Septembercalendar year
Public debt41.9% of GDP (2017 est.)

41.8% of GDP (2016 est.)

note: data cover general government debt and include debt instruments issued (or owned) by government entities other than the treasury; the data include treasury debt held by foreign entities; the data include debt issued by subnational entities, as well as intragovernmental debt; intragovernmental debt consists of treasury borrowings from surpluses in the social funds, such as for retirement, medical care, and unemployment; debt instruments for the social funds are sold at public auctions
30.4% of GDP (2017 est.)

29.1% of GDP (2016 est.)
Reserves of foreign exchange and gold$202.6 billion (31 December 2017 est.)

$171.9 billion (31 December 2016 est.)
$12.2 billion (31 December 2017 est.)

$9.122 billion (31 December 2016 est.)
Current Account Balance$37.033 billion (2019 est.)

$28.423 billion (2018 est.)
-$1.871 billion (2017 est.)

-$1.731 billion (2016 est.)
GDP (official exchange rate)$543.798 billion (2019 est.)$22.09 billion (2017 est.)
Credit ratingsFitch rating: BBB+ (2013)

Moody's rating: Baa1 (2003)

Standard & Poors rating: BBB+ (2004)
Moody's rating: B2 (2007)

Standard & Poors rating: N/A (2014)
Ease of Doing Business Index scoresOverall score: 80.1 (2020)

Starting a Business score: 92.4 (2020)

Trading score: 84.6 (2020)

Enforcement score: 67.9 (2020)
Overall score: 53.8 (2020)

Starting a Business score: 52.4 (2020)

Trading score: 67.3 (2020)

Enforcement score: 31.7 (2020)
Taxes and other revenues15.2% (of GDP) (2017 est.)17.9% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-3.5% (of GDP) (2017 est.)-1.8% (of GDP) (2017 est.)
Unemployment, youth ages 15-24total: 4.2%

male: 3.4%

female: 5.3% (2019 est.)
total: 1.1%

male: 1%

female: 1.2% (2016 est.)
GDP - composition, by end usehousehold consumption: 48.8% (2017 est.)

government consumption: 16.4% (2017 est.)

investment in fixed capital: 23.2% (2017 est.)

investment in inventories: -0.4% (2017 est.)

exports of goods and services: 68.2% (2017 est.)

imports of goods and services: -54.6% (2017 est.)
household consumption: 76% (2017 est.)

government consumption: 5.4% (2017 est.)

investment in fixed capital: 21.8% (2017 est.)

investment in inventories: 1.2% (2017 est.)

exports of goods and services: 68.6% (2017 est.)

imports of goods and services: -73% (2017 est.)
Gross national saving31.5% of GDP (2019 est.)

31.7% of GDP (2018 est.)

31.9% of GDP (2017 est.)
27.2% of GDP (2019 est.)

25.4% of GDP (2018 est.)

23.2% of GDP (2017 est.)

Source: CIA Factbook