Since the late 1990s, the Cambodian economy has achieved a high level of economic growth, and the industrial structure has seen a shift from the agriculture industry to the manufacturing industry. The results of the Economic Census conducted in 2011 and 2022 show that the textile and garment manufacturing industry and the leather product manufacturing industry have expanded significantly in the consumer goods industry, while in the capital goods industry, electrical equipment manufacturing industry and transportation machinery manufacturing industry have begun in earnest.

  This paper shows mainly the following results. 1) The debt to GDP ratio cannot diverge to infinity, that is, fiscal collapse is impossible. The necessary and sufficient condition for this result is that the propensity to consume from the asset income is positive. 2) The divergence of the debt to GDP ratio is prevented by inflation when the interest rate on government bonds is higher than the real growth rate. We need only an inflation rate slightly greater than the difference between the interest rate on government bonds and the real growth rate. This inflation is not caused by policy but occurs naturally.