PHNOM PENH, Oct. 7 (Xinhua) -- Cambodia's GDP growth was projected to reach 7 percent in equivalent to 15.65 billion U.S. dollars in 2013 despite a challenging global economic environment, the World Bank said Monday.
Overall macroeconomic outlook remains positive, having sustained agricultural growth, continued strong performance of the tourism sector, a resilient garment sector and rebounding construction activity, the Bank said in the East Asia Pacific Economic Update.
"However, the economic outlook faces some risks--it is unclear how big the impact of a post-election political uncertainty is having on foreign direct investment and growth," it said.
"Seven percent is a very high growth rate for Cambodia," Bert Hofman, Chief Economist of the World Bank to East Asia and Pacific Region, said via a video news conference from Singapore.
"Garment industry, tourism and agriculture are doing very well, " he said.
The Bank said in the agricultural sector, rice production has continued its high growth due to rising cultivated areas of rice crops.
The garment export industry has adapted to export market conditions, focusing on lower-end garment products for the United States market and higher-end products for the European market.
During the first six months of 2013, garment exports accelerated further, growing at 18 percent year-on-year, while the tourism sector continues its high growth trajectory, with a tourist arrival growth rate of 19 percent year-on-year, it said.
The Bank estimated that Cambodia's inflation this year was around 5 percent.
World Bank's GDP projection for Cambodia in 2013 was lower than the forecasts of 7.2 percent by the Asian Development Bank and 7.6 percent by the Cambodian government.
The Asian Development Bank (ADB) said last Wednesday that Cambodia's economy was expected at 7.2 percent in 2013, supported by buoyant exports and robust construction and service sectors.
In 2014, the pace is expected to pick up to 7.5 percent as recovery gains traction in Europe and the United States, the ADB said.
Cambodian Prime Minister Hun Sen said last month that the country's economy was projected to grow by 7.6 percent in 2013.
The country's per capita GDP was projected to hit 1,036 U.S. dollars in 2013, up from nearly 1,000 dollars in a year earlier, he said.
"The country will move from the status of a low-income to a lower-middle income nation in the near future," he said during the first cabinet meeting.
Lower middle income countries are defined by the GDP per capita between 1,036 dollars and 4,085 dollars, according to the World Bank's classifications.