Cambodia's economy will grow 7.1 per cent in 2016 while per capita income will reach $1,301 this year, Prime Minister Hun Sen said yesterday.

“The use of local goods has surged thanks to local and foreign direct investment, which creates jobs and income for our people,” he said at the 65th founding anniversary of the ruling Cambodian People’s Party (CPP).

Hun Sen highlighted the low rate of inflation, which stayed below 1.9 per cent, while foreign currency reserves increased to about $5.45 billion – enough to sustain imports for four months.

He noted that Cambodian customs revenues topped $763 million during the first five months of the year, a 22 per cent increase over the same time a year earlier.

Meanwhile, tax revenues during the first five months of 2016 grew by 21 per cent to $708 million.