PHNOM PENH, Sept. 27 (Xinhua) -- The Asian Development Bank (ADB) maintained its March projection for Cambodia's economic growth at 7 percent in 2016 and slightly up to 7.1 percent in 2017, said its updated report released Tuesday.

The Southeast Asian country's growth is mainly driven by garment export, tourism, agriculture and construction.

"The outlook for Cambodia's economy, after attaining lower-middle-income status in July, remains robust with exports from the garment and footwear industry rising by 9.4 percent in the first half of this year," said Samiuela Tukuafu, ADB's Country Director for Cambodia.

"While growth in credit to the private sector moderated to 28.1 percent year-on-year in June 2016, it still indicates buoyant domestic demand," he said. "Better weather since June, following an extended drought, should help a mild recovery in agriculture."

According to the report, solid domestic demand and increased food prices lifted average inflation to a higher than expected 2.7 percent year-on-year in the first six months of 2016.

It added that inflation forecasts have been slightly increased in line with an expected rise in global oil prices, to an average rate of 3.4 percent in 2017.

Merchandise exports increased by an estimated 12.3 percent in U.S. dollar terms in the first six months, faster than the 9.4 percent recorded in the first half of 2015, the report said, adding that growth in merchandise imports slowed to 7.3 percent from 17 percent.

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