Tuesday, October 27, 2009

Cambodia ranks next to last in Asia-Pacific on the 2009 Legatum Prosperity Index

Source: http://www.prosperity.com/

The Legatum Prosperity Index is the world's only global assessment of wealth and wellbeing; unlike other studies that rank countries by actual levels of wealth, life satisfaction or development, the Prosperity Index produces rankings based upon the very foundations of prosperity – those factors that help drive economic growth and produce happy citizens over the long term.
Economic Fundamentals - Ranked 65th
Cambodia is strong on trade, but low value exports and a weak domestic market are a dead weight on the economy
Unemployment is low at 4%, putting Cambodia in the top 15 countries on this variable of economic performance. The difference between banks’ borrowing and lending rates is low at 4.2 percentage points, indicating a moderately efficient banking sector. Cambodia receives a great deal of foreign direct investment, falling just outside the top 10. Cambodia has the least severe export dependency on raw materials of all countries and, with a strong ratio of export revenues to imports, its terms of trade remain within the top 15 countries. While the inflation rate is moderate at 6%, the domestic savings rate is just 13% of GDP, and capital stock per worker is particularly low, putting Cambodia in the bottom 20 on both variables. Household expenditure as a percentage of GDP is also low at 22%, suggesting a weak domestic market for Cambodian businesses.

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