Vientiane (VNA) – The Asian Development Bank (ADB) has lowered Laos’ 2025 GDP growth forecast from 3.9% to 3.7%, citing debt vulnerabilities, weak demand, and trade tensions.
According to the bank’s September report, services remain the primary growth engine for the Lao economy in 2025. It is expected to expand 4.5%. Laos’ tourism has rebounded strongly, with over 3 million visitors in the first eight months of 2025, bolstering retail, hospitality, and transport sectors.
Industry is projected to grow 3.6%, supported by gains in energy and manufacturing, while agriculture is forecast to expand modestly by 1.3%, aided by favourable weather conditions.
Electricity output grew 3.2% in the first half of 2025 and is expected to grow by around 6.5% for the full year.
The ADB said the downward revisions to growth and inflation forecasts reflect persistent economic challenges and a gradual easing of inflationary pressures. While lower inflation has supported some sectors, trade tensions and fiscal constraints could see the recovery slower than expected./.
