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 […]

This paper studies the role of rural credit in Cambodia during the global financial and economic crisis that began in 2008. The paper briefly reviews rural credit in Cambodia during 2008, analyses rural households’ formal and informal credit demand during the crisis and proposes policy options. The results suggest that household demand for credit increased during the crisis. The demand for formal loans was higher than for informal ones, indicating the important role of the formal rural credit market in times of economic downturn. There […]

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 […]