A Government official predicts Cambodia’s gross domestic product will grow by seven per cent this year despite the uncertainty of the global economy, especially in the US, and in light of the sovereign-debt crisis in Europe.

The projection is only slightly higher than estimates by the International Monetary Fund (IMF), the World Bank and the Asian Development Bank, which average 6.7 per cent.

Ou Proum Virak, deputy director of the Trade Promotion Department of the Commerce Ministry, said the global economy was on the way to recovery.  He said Cambodia’s economy had done well last year and  would keep growing this year.

“With the government’s concrete reforms, economic growth has rapidly recovered from the global economic crisis. It maintained annual growth of seven per cent last year, and it will be the same rate this year,” Ou Proum Virak told a trade seminar yesterday.

He said garment exports, tourism, agriculture and construction were still on the rise, but added that the global economic situation at the end of 2012 and into 2013 still had high risks caused by persistent sovereign-debt problems in Europe and the sluggish recovery of the US economy.

“These could be challenges for Cambodia to increase exports as well as attract foreign direct investment.”

The Ministry of Economy and Finance said on December 18 GDP growth would reach seven per cent this year.

“Cambodia’s economy is proving the strength toward its growth projection of seven per cent annually, although the world economic outlook at the end of 2012 and 2013 will continue to face high risks because of Europe’s dept crisis and a slow recovery of the US’s economy,” the release said.

It also highlighted the improvement in the four main pillars of the Kingdom’s economy — agriculture, industry [garments and textiles], construction and real estate — as well as tourism.

Last Tuesday, the IMF said Cambodia’s economy was expected to increase by 6.7 per cent this year.

“The outlook is subject to considerable risks, stemming from the fragility of the global economy and a range of domestic factors, including potential labour-market instability and extreme weather,” it said.

To contact the reporter on this story: May Kunmakara at [email protected]