The Economy of Cambodia has seen rapid economic progress in the last decade. Per capita income, although rapidly increasing, is low compared with most neighbouring countries. The main domestic activity on which most rural households depend is agriculture and its related sub-sectors. Manufacturing output is varied but is not very extensive and is mostly conducted on a small-scale and informal basis. The service sector is heavily concentrated in trading activities and catering-related services. Cambodia has reported that oil and natural gas reserves have been found off-shore.

During 1995, the government implemented firm stabilization policies under difficult circumstances. Overall, macroeconomic performance was good. Growth in 1995 was estimated at 7% because of improved agricultural production (rice in particular). Strong growth in construction and services continued. Inflation dropped from 26% in 1994 to only 6% in 1995. Imports increased as a result of the availability of external financing. Exports also increased, due to an increase in log exports. With regard to the budget, both the current and overall deficits were lower than originally targeted.

Cambodia (ⁱ/kæmˈboʊdiə/;Khmer: ព្រះរាជាណាចក្រកម្ពុជា, Kampuchea, IPA: [kɑmˈpuˈciə]), officially known as the Kingdom of Cambodia, is a country located in the southern portion of the Indochina Peninsula in Southeast Asia. With a total landmass of 181,035 square kilometres (69,898 sq mi), it is bordered by Thailand to the northwest, Laos to the northeast, Vietnam to the east, and the Gulf of Thailand to the southwest.

With a population of over 14.8 million, Cambodia is the 68th most populous country in the world. The official religion is Theravada Buddhism, which is practiced by around 95% of the Cambodian population. The country minority groups include Vietnamese, Chinese, Chams and 30 various hill tribes. The capital and largest city is Phnom Penh; the political, economic, and cultural center of Cambodia. The kingdom is a constitutional monarchy with Norodom Sihamoni, a monarch chosen by the Royal Throne Council, as head of state. The head of government is Hun Sen, who is currently the longest serving leader in South East Asia and has ruled Cambodia for over 25 years.