Growing Middle Class in Cambodia
Cambodia has witnessed a significant expansion of its middle class in recent years. According to the World Bank, the proportion of the middle-class population in Cambodia surged from 23% in 2010 to 42% in 2019. This growth can be attributed to various factors, including:
Economic growth
Cambodia’s economy has experienced an average annual growth rate of 7.7% over the past two decades, positioning it among the world’s fastest-growing economies. This robust growth has generated new job opportunities and income growth for Cambodians.
Urbanisation
Cambodia is undergoing rapid urbanisation, with the urban population projected to reach 50% by 2030. This urban shift has led to increased demand for consumer goods and services, thereby benefiting the middle class.
Foreign investment
In recent years, Cambodia has attracted substantial foreign investment, which has contributed to job creation and economic advancement. This influx of investment has also introduced new technologies and business practices, resulting in positive outcomes for the middle class.
Urbanisation (% of total population) - Cambodia
Reference: Worldbank.org
The expansion of Cambodia’s middle class holds several positive implications for the country, including:
Increased consumption
Higher spending on goods and services by the middle class stimulates economic growth.
Growing demand for education and health care
The middle class seeks better education and health care for their families, prompting improvements in these sectors.
Enhanced investment in infrastructure
The middle class demands improved infrastructure, such as roads, bridges and airports. This has prompted the government to make investments in these areas.
Increased social mobility
A burgeoning middle class is fostering opportunities for upward social mobility among Cambodians, contributing to a more equitable society.
The growth of Cambodia’s middle class is a positive trend that is bringing numerous benefits to the country. This phenomenon is expected to continue in the coming years, presenting new opportunities for businesses and investors while improving the lives of Cambodian citizens.
