A country's national income often has a massive impact on its level of human development and the overall quality of life its residents enjoy. The World Bank, examines the GNI (Gross National Income) per capita of each countries and territories in the world and sorts each into one of four groups: high-income, upper-middle-income, lower-middle income, and low-income. Upper-middle income countries and lower-middle income countries are known collectively as middle-income countries (MICs).[I]

As per the World Bank’s criteria from 2022 to 2023 World Bank Country Lending Group guidelines that: 1). The Low-income economies - 2021 GNI per capita of up to $1,085; 2). The Lower-middle-income economies - 2021 GNI per capita of $1,086 to $4,255; 3). The Upper-middle-income economies - 2021 GNI per capita of $4,256 to $13,205; and 4). The High-income economies - 2021 GNI per capita of $13,206 or more.[ii]

The government has set a goal of transforming Cambodia into a higher-middle-income (Upper-middle-income) country by 2030 and a high-income by 2050. As expected, Cambodia's Government will become a high-middle-income country by 2030, despite the challenges posed by the global economy, the war between Ukraine and Russia, and the climate change crisis. As expected, Cambodia will leave the status of a least developed country (LDC) by 2027 and reach its goal of becoming a high-middle-income country by 2030.

According to a report by Asian Development Bank (ADB) in April, Cambodia’s economy is forecast to grow at 5.5% in 2023 and 6.0% in 2024 on a more robust tourism recovery and higher growth in the services sector.

According to Asian Development Outlook (ADO) April 2023, the tourism sector is expected to grow 7.3% in 2023 before easing to 6.8% in 2024. Inflationary pressure is anticipated to moderate at an average rate of 3.0% in 2023 and 4.0% in 2024. Cambodia’s economic outlook also hinges on the country’s continuing efforts to scale up green investment to unlock long-term growth potential.[iii]

According to the National Bank of Cambodia (NBC), Cambodia’s GDP per capita has been upgraded to $1,842 in 2022, a 6.4 percent increase compared to 2021, $1,730[iv]  and according to the Macrotrends LLC, Cambodia GNI per capita for 2021 was $1,580, a 3.27% increase from 2020 was $1,530, a 1.92% decline from 2019 was $1,560, a 9.86% increase from 2018 was $1,420, a 12.7% increase from 2017.[V]

The Cambodian Prime Minister said, to sustain the economy in the long run, the government will further invest in the fields of healthcare, social protection, human resource development, small and medium enterprises, digital technology, and green development, among others.

So, Cambodia's government wants to leave the status of a least developed country (LDC) by 2027 and reach its goal of becoming a high-middle-income (Upper-middle-income) country by 2030 with GNI per capita between $4,256 and $13,205 and along with the challenges posed by the global economy, the war between Ukraine and Russia, and the climate change crisis will need too long run for sustainable the economy and we do hope that Cambodia Government will successful as expected./.

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[i] World Population Review, “Middle-Income Countries 2023”, https://worldpopulationreview.com/country-rankings/middle-income-countries (accessed date: 06-June-2023)

[ii] World Population Review, “2022-2023 World Bank Country Lending Group guidelines”, https://worldpopulationreview.com/country-rankings/middle-income-countries (accessed date: 06-June-2023)

[iii] Asian Development Bank, “Cambodia’s Economy to Accelerate on Tourism Recovery — ADB”, https://www.adb.org/news/cambodia-economy-accelerate-tourism-recovery-adb (accessed date: 06-June-2023)

[IV] Chea Vanyuth, “Cambodia’s per capita income $1,842 in 2022, says NBC”, Khmer Times, January 7, 2022, https://www.khmertimeskh.com/501002317/cambodias-per-capita-income-1842-in-2022-says-nbc (accessed date: 06-June-2023)

[V] Macrotrends LLC, “Cambodia GNI Per Capita 1995-2023”, https://www.macrotrends.net/countries/KHM/cambodia/gni-per-capita (accessed date: 06-June-2023)