Cambodia is a lower-middle income economy according to the World Bank, and a UN-designated Least Developed Country. Its 2023 GDP of $42.3 billion accounts for 1.1% of the regional GDP of Southeast Asia. With a population of 17.4 million, Cambodia’s GDP per capita is $2,429, the fourth-lowest in the region.
From 2015 to 2023, 17,496 aid and development projects were implemented in Cambodia by 73 development partners, totalling $21.9 billion in official development finance (ODF).
Key trends
ODF disbursements including grants, loans, and other forms of assistance to Cambodia have grown modestly over time, with Cambodia receiving the fifth-largest volume of ODF in the region. A 2021 peak in spending of just under $3.5 billion, mostly due to a boost in pandemic-related support, has since levelled out to an average of $2.5 billion annually from 2015 to 2023.
ODF has fluctuated relative to Cambodia’s economy, rising from 7.5% of GDP in 2015 to a high of 9.6% in 2020 and then stabilising at 6% in 2023. As one of the region’s poorest economies, Cambodia’s 2023 ODF to GDP ratio is the second-highest. Almost half of Cambodia’s ODF is received as concessional loans, and a third as grants, with the rest non-concessional loans.
Looking ahead, new commitments to Cambodia declined in 2023 but remained slightly above pre-pandemic levels, indicating that disbursements in coming years are likely to see a modest increase.
- Spent
- Committed
Development partners
China, Japan, and the Asian Development Bank (ADB) have been Cambodia’s primary development partners, together accounting for almost 60% of Cambodia’s ODF since 2015.
A dramatic collapse in China’s spending in Cambodia in 2022 has been partially corrected by ongoing disbursements for large infrastructure projects, but 2023 levels were still lower than China’s average yearly spend between 2015 and 2022. China accounted for only 28% of Cambodia’s ODF in 2023, down from 45% in 2021. While China’s assistance has traditionally been focused on the transport and storage and energy sectors, in 2023 agriculture, forestry, and fishing received the most support. A substantial 89% of China’s support to Cambodia has been delivered through loans, of which 59% have been concessional.
Japan’s contribution has grown, and while still lower than China’s, it has not experienced the same volatility and is offered consistently as grants and concessional loans. Japan’s long-term focus on transport and storage has been maintained, with that sector now accounting for 38% of Japan’s total assistance to Cambodia since 2015.
The ADB’s level of support to Cambodia in 2023 is higher than in any year other than 2020, when it delivered significant Covid-19 budget support. The ADB’s spending is evenly spread through a variety of sectors, with industry, mining, and construction and government and civil society topping the list in 2023. Of all ADB assistance to Cambodia, 93% has been delivered through concessional loans.
The World Bank has massively expanded its presence in Cambodia, increasing its contributions from just $5 million in 2015 to more than $400 million in 2023, ensuring its place as Cambodia’s second-largest development partner in 2023. The World Bank targets its support at the government and civil society sector through concessional loans.
The rising role of the multilateral development banks in Cambodia has been supplemented by secondary donors such as the United States, South Korea, and Australia.
Sectors
The transport and storage sector has consistently received the most support from Cambodia’s development partners, with special priority awarded to road transport, particularly construction of national roads. Since 2015, transport and storage has received roughly a third of all ODF to Cambodia, above the regional average of 21%.
Since 2015, 13% of ODF to Cambodia has been spent in the government and civil society sector, predominantly for budget support, public financial management, and social protection schemes, but this amount remains below regional averages.
Agriculture, forestry, and fishing attracts 10% of total ODF to Cambodia. Spending in this sector is dominated by development of agricultural water resources.
Despite Cambodia’s energy generation and access challenges, ODF spending on energy at 6% is far lower than the regional average of 21% and it ranks as only the seventh-largest sector.
- Cambodia
- Regional average
Policy goals
The Southeast Asia Aid Map tracks ODF with integrated policy goals across three policy domains or cross-cutting themes (as distinct from sectors): climate action, gender equality, and disability inclusion.
Cambodia has received rising levels of policy-integrated ODF. Over 2015–23, Cambodia received less than the regional average for ODF targeting disability inclusion (6%) and climate action (28%) goals. However, it received slightly more than the regional average for ODF targeting gender equality (27%).
Provision of intra-regional ODF
Cambodia is the third-largest provider of intra-regional ODF, providing an annual average of $900,000 over 2015–23. Cambodia’s intra-regional assistance is typically in the humanitarian aid sector, with occasional contributions in health and government and civil society. Phnom Penh has extended bilateral ODF only to its neighbours Laos, Vietnam, and Myanmar.