This chapter assesses how the global economic and financial crisis has affected employment in small- and medium-sized enterprises (SMEs) in the construction and tourism sectors in Phnom Penh municipality and Siem Reap province.  Key areas of analysis are SMEs’ business performance, fixed assets value, and employment, and support received to cope with the crisis. The methodology involved a survey of 120 SMEs, 60 from each of the two sectors. The global crisis affected the business performance and fixed assets value […]

This study applies the growth diagnostic approach, developed by Hausmann, Rodrik and Velasco in 2005, to identify binding constraints on Cambodia’s growth after the crises in 2008 and 2009. Growth was strong during 1999-2009 at an average annual rate of 9.0 percent, but then slowed to 6.7 percent in 2008 and dropped to 0.1 percent in 2009, before rebounding in 2010 posting 5 percent. Average annual inflation rate was between 1 and 7 percent during 2002-2007, but jumped to 25 […]

Although the global economy is recovering from the financial and economic crisis that started in 2008, many countries have not returned to their pre-crisis growth rates. Cambodia is no exception. Despite its rich endowment of natural resources, especially minerals, oil and gas, the country still depends on a narrow growth base of just four sectors: garments and textiles, tourism, construction and agriculture. Agriculture apart, heavy reliance on foreign investment and markets makes these sectors vulnerable to external shocks, which have […]