ADB lowers growth forecast for Lao economy this year

The Asian Development Bank (ADB) has revised down its growth forecast for the Lao economy in 2023 to 3.7%, from a 4.0% projection released in April.

According to the Asian Development Outlook (ADO) September 2023, economic growth in Laos is forecast to be slower than expected due to weaker growth prospects in China, and macroeconomic pressures arising from unsustainable public debt and a weak Lao currency, the kip.

The 2024 growth forecast was kept at 4.0%.

Curbing inflation is among the main challenges to Laos. Though inflation decelerated in August to stand at 25.88%, down from 28.64% in June and 27.8% in July, the rate is still among the highest in the region. The Lao Statistics Bureau said the weak kip is one of the main drivers of inflation.

Lao media cited ADB Country Director for Laos Sonomi Tanaka as saying that sound macro-economic management, including stronger coordination across fiscal and monetary policies, is urgently needed to address the country’s economic and financial challenges.

Source: Vietnam News Agency

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