Mekong River Commission

Fisheries still among top employers and drivers
of Cambodian economy

Number of people classified as fishers grows 32% in five years

According to government figures released by the International Monetary Fund (IMF) in February, the fisheries sector in Cambodia remained the fourth-largest employer and also the fourth-biggest contributor to gross domestic product (GDP) in 2007. the only sectors to employ more people or generate greater economic output were agriculture (crops, livestock and poultry), trade and manufacturing. Fisheries employed 385,000 people in 2007, up 2% from a year earlier and accounting for almost 5% of the Cambodian workforce (see Table 1 below). That compares with about 4% of the workforce in 2002 when fisheries employed only 291,000 people, marking an increase of 32% over five years (by comparison, the number of farmers growing crops and raising livestock or poultry rose by less than 4% over the same period).

Since they reflect the number of people who see themselves as primarily engaged in fisheries, the employment figures possibly indicate increased pressure on Cambodia's fish resources.

Fisheries meanwhile contributed more than KHR 2.4 trillion ($600 million) to GDP in 2007, almost 7% of the country's total output of goods and services. That amounted to more than half the value of tourism receipts collected during the year and was also more than half the output from textiles, apparel and footwear which together account for most manufacturing. The report also noted that fish exports climbed almost 17% from a year earlier to $105 million in 2007 (see Table 2 on page 35), equivalent to five times the export value of logs and sawn timber. The overall volume of fish and shrimp production grew 7% to 562,000 tonnes in the same period, amounting to five times the volume of soybeans produced. Crocodile production was, however, down 20% at 110,000 heads. That compares to about 800,000 heads of buffalo in 2007.

 

Table 1. Top Ten Employers by Sector, 2007

Sectoral employment and output at current prices

	Number employed	% of workforce	output US$ millions	% of GDP
Agriculture¹	4,224,000	50.6	1,699	19.9
Trade	1,196,000	14.3	762	8.9
Manufacturing	944,000	11.3	1,481	17.3
Fisheries	385,000	4.6	601	6.9
Construction	299,000	3.6	570	6.7
Transport and Communications	228,000	2.7	591	6.9
Public Administration²	185,000	2.2	168	1.9
Education	128,000	1.5	NA³	NA³
Social Services4	123,000	1.5	NA³	NA³
Hotels and Restaurants	86,000	1.0	370	4.3

¹crops, livestock and poultry ²including defence ³disaggregated data not available ⁴excluding heath and social work
Source: IMF

Table 2. Fisheries Production, Exports and Employment, 2002-07

Volumes, Values and Employment

	2002	2003	2004	2005	2006	2007
Fresh fish and shrimp (thousands of tonnes)	425	394	330	428	524	562
Crocodiles (thousands of heads)	51	78	75	120	138	110
Fisheries output (billions of riel at current prices)	1,704	1,721	1,754	1,892	2,160	2,435
Fish exports (millions of dollars)	73	76	69	76	90	105
Numbers employed (thousands)	291	323	360	400	376	385
Share of Workforce (%)	4.2	4.4	4.6	4.8	5.1	4.6

Source: IMF

 

 

Table 3. Agricultural Production, 2002-07

Contributions to GDP at current prices (%)

	2002	2003	2004	2005	2006	2007
Paddy rice	425	394	330	428	524	562
Fisheries	10.2	9.3	8.2	7.3	7.2	6.9
Non-Rice Crops	51	78	75	120	138	110
Livestock and Poultry	1,704	1,721	1,754	1,892	2,160	2,435
Forestry and Logging	73	76	69	76	90	105

Source: IMF

Importance of fisheries expected to increase
During the first half of of the decade, fisheries production exceeded rice output in terms of value (see Table 3 above and Catch and Culture, Vol 9, No 1). But following a poor rice harvest in 2004 and a sharp rebound in yields the following year, fisheries production has lagged rice production since 2005. At the same time, the contribution of fisheries to the economy has been dwarfed by double-digit GDP growth, especially in the garment, tourism and construction sectors. The relative importance of fisheries to Cambodia is, however, expected to increase as the overall economy deteriorates in 2009.

River barrages with bagnets (yor) are common on the Tonle Sap
Illust ration: Arijan Jansonius

In a separate statement in March, the IMF said Cambodia's economy was expected to shrink 0.5% this year as it becomes increasingly affected by the global economic contraction and financial crisis. The revised GDP projection reversed an earlier forecast for 4.8 % growth this year, down from an estimated 6.5% in 2008. The statement noted that garment exports were under pressure while growth in tourist arrivals had turned negative. At the same time, construction activity and foreign investment were slowing rapidly. And while agriculture performed better than anticipated in 2008, "the fall in global agricultural prices may limit further gains this year." The IMF and Cambodian authorities agreed that the projected decline in economic activity warranted a larger stimulus beyond that envisaged in the government's budget for 2009. Such a stimulus could raise the budget deficit to 4.75% of GDP without jeopardising recent fiscal gains or increasing external vulnerability (authorities had proposed a budget deficit of 4.25% of GDP in the preliminary budget for 2009, up from an estimated 1.75% in 2008). The IMF recommended that most of the additional stimulus should come from higher spending focussed on pro-poor social outlays and safety nets as well as "high-quality infrastructure projects that would strengthen competitiveness."

Further reading
http://www.imf.org/external/pubs/ft/scr/2009/cr0948.pdf
http://www.imf.org/external/pubs/ft/scr/2009/cr0947.pdf
http://www.imf.org/external/np/sec/pr/2009/pr0967.htm