Laos economic outlook positive, ADB reports

The Lao Republic’s growth forecast for 2024 has been maintained at 4.0 per cent, the Asian Development Bank’s latest report Asian Development Outlook (ADO) showed on Wednesday.

However, the forecast for 2025 has been revised downward to 3.7 per cent from the previously projected 4.0 per cent.

Inflation is expected to rise to an average of 25 per cent in 2024 and 21.5 per cent in 2025 due to price adjustments linked to the depreciation of the Lao kip.

Despite a surge in international tourist arrivals, which have nearly reached pre-pandemic levels, the country continues to grapple with debt distress.

The ADB’s Country Director for the Lao PDR, Sonomi Tanaka, emphasised the need for coordinated, transparent, and sustainable public financial management to address these challenges.

Attribution: Asian Development Bank’s report

Subediting: M. S. Salama