Lao economy forecast to maintain growth (Photo: VNA) Vientiane (VNA) - Lao researchers are optimistic about thegrowth of the Lao economy, which is projected to expand by 4.5 % this year amidglobal economic challenges.
According to the latest report from the Macro-economic ResearchInstitute of the Lao Academy of Social and Economic Sciences (LASES), theeconomic growth will be driven by the services sector in association with thegrowth of the tourism and processing industries and agricultural production forexport.
Theagricultural sector is set to see an increase of 3.5% this year following aninjection of funds for boosting productivity. Meanwhile, the industrial sector is hoped tosee an increase of 4.6% from export related to processing industries in specialeconomic zones.
Theconstruction sector is also set to see growth, although financial hardshipsfaced by the government and reducing capital inflows may affect its growth.
According to Vice President of the LASES, Dr Kikeo Chanthaboury,the launch of the cross border Laos-China railway has contributed tosignificantly bolstering regional trade and people-to-people exchanges.
DrKikeo said the Laos-China railway provides an opportunity to Laos to boost itsexport, tourism and logistics sectors.
However, there are also pressing challenges facing Laos, such assoaring inflation,high public debt, depreciation of the currency and Lao workers seeking betterpay abroad. These challenges are made worse by the problem with regulating thelocal currency, which directly impacts the cost of goods.
Despite these challenges, the reopening of China’s market with 1.3 billion consumers is beneficial to Laos. This year alone, more than 3 milliontonnes of agriculturalproducts were exported to China, Thailand and Vietnam./.
