Wednesday, June 3, 2015


What difference can be identified between China and Cambodia in terms of Economy?

Fig.1  Economic Growth Graph Comparison between Cambodia and China.

This graph shows the economic growth of China and Cambodia for the past 12 years. As it can be seen, the slope that is coloured red represents Cambodia meanwhile the slope that is coloured blue is China. By looking at the graph, it is determined that China has rapid economic growth in comparison to Cambodia. The best year for China in Economic Growth was during the year 2007 at 14.16% rate of real GDP, meanwhile the best year for Cambodia in Economic Growth is during 2005, with 13.25% rate of real GDP. However, Cambodia had an atrocious and unacceptable year in 2009, where the rate of real GDP has decreased from 6.69% in 2008 to 0.09% rate of real GDP. Similarly the same, China's economic growth has fallen during the years 2008 (9.63%), 2009 (9.21%), and 2012 (7.65%), however, the difference is that Cambodia's economic growth had never fallen to 0% rate of real GDP. The growth of both countries depend on their growth in the following:
  • GDP Per Capita 
  • Inflation (Cambodia with higher inflation for the past 12 years reaching 25% increase of inflation change in 2008, China's biggest change only 5.9%)
  • Capital Investment (China has more capital investment with highest % of 48.24%, meanwhile Cambodia highest % is 21.36 in 2009)
  • Human Development (China, 0.719% in 2013 meanwhile Cambodia, 0.548% in 2013)
  • Household consumption (China, 82.3% in 2011, Cambodia 35.9 in 2011)
  • Share of Industry (China, 43.89% in 2013, Cambodia 25.65% in 2013)
  • Share of Agriculture (China 33.52% in 2013, Cambodia 10.01 in 2013)
  • etc
The margin between China and Cambodia in terms of GDP Per Capita, Inflation, Capital Investment, Human Development, Household Consumption, Share of Industry, Share of Agriculture, and many more represents the economic growth of the two countries. With China having higher percentages in GDP Per Capita, Capital Investment, Human Development, Household Consumption, Share of Industry, Share of Agriculture, and Cambodia with higher inflation for the past 12 years, it is apparent and approved that China has rapid economic growth, meanwhile Cambodia's economic growth has fallen and is stagnant.

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