Lao economy to grow at 2.2% in 2022: IMF

Vientiane (VNA) - The International Monetary Fund (IMF) has forecast that the Lao economy will expand 2.2% in 2022 before rising 3.1% in 2023.

The IMF's October projection remained unchanged at 2.2%, but the figure was downgraded from a 3.2% forecast in April, according to an updated report released on the IMF website on October 15.

The IMF's downgraded growth for Laos is linked to both external and internal factors, with the report forecasting that global growth will decrease from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023.

In Laos, the skyrocketing price of fuel and the petrol shortage in May and June have had huge effects on economic activities, notably agriculture and manufacturing.

Meanwhile, in its recent report released on September 21, the Asian Development Bank (ADB) lowered its 2022 growth outlook for Laos to 2.5% from 3.4% projected in April and to 3.5% from 3.7% for 2023.

The downgrade is linked to supply disruptions and rising commodity prices, which have increased inflationary pressures.

In addition, the World Bank's East Asia and Pacific October 2022 Economic Update also lowered the growth forecast for Laos in 2022 to 2.5% from an earlier 3.8% projection for 2023.

In September, the Lao Academy of Social and Economic Science (LASES) lowered its economic growth forecast for Laos to 3% in 2022, from 4% projected in previous months.

The academy said the downgraded projection of economic growth is due to slow expansion in sectors relating to consumption, exports, and private and state investment./.