VIENTIANE, Sept. 27 (Xinhua) -- The Asian Development Bank (ADB) has projected that the Lao economy will grow by 4 percent in 2024, supported by investments in services and clean energy, though macroeconomic challenges from public debt continue to constrain investment prospects and domestic consumption.

The ADB revised its growth forecast for Laos in 2025 to 3.7 percent from the 4 percent projected in the Asian Development Outlook (ADO) of April 2024, the local Pasaxon newspaper reported on Friday.

Inflation was forecast to rise to an average of 25 percent in 2024 and 21.5 percent in 2025, largely driven by price adjustments linked to the depreciation of the Lao currency kip.

ADB Country Director for Laos Sonomi Tanaka said "International tourist arrivals are now close to the pre-pandemic levels, with the ASEAN chairmanship and Visit Laos Year 2024 having boosted tourism."

"However, risks to this outlook stem from debt distress, necessitating coordinated, transparent, and sustainable public financial management," she added.

The inflation rate in Laos dropped to 24.3 percent in August, down from 26.1 percent in July. A shortage of skilled labor has further pressured domestic prices and wages, prompting businesses to pass increased costs onto consumers and exacerbating inflationary expectations, according to the report. Enditem

Related

Go to Forum >>0 Comment(s)