Vientiane (VNA) – Laos’ economy is projected to grow by 4.8% this year, reflecting steady progress under the country’s five-year socio-economic development plan for 2021–2025.
According to Laos’ News Agency KPL, Lao Prime Minister Sonexay Siphandone presented the Lao Government’s report at the 10th Ordinary Session of the 9th National Assembly on November 10, emphasising that the country’s economy has expanded at an average annual rate of 4.24%, in line with the five-year plan.
Over the past five years, the Lao Government has focused on implementing 12 key economic priorities, particularly addressing economic and financial difficulties and introducing measures to stimulate growth.
During the period, the agricultural sector has grown at an average of 2.9%, accounting for 19.4% of GDP—exceeding the plan’s projection of 2.5% growth and 15.3% of GDP. The industrial sector has expanded by an average of 4.7%, representing 32.5% of GDP, also surpassing the planned 4.1% growth and 32.3% share. Meanwhile, the service sector increased by 4.5%, accounting for 36.6% of GDP, which was below the targets of 6% growth and 41.3% of GDP.
Key drivers of growth included food production for domestic use and export, electricity production, mining, processing industries, and transportation.
Unfavourable weather conditions, natural disasters, and the COVID-19 pandemic significantly disrupted business operations and social stability. Externally, regional and global economic volatility, slower-than-expected recoveries in neighbouring economies, and labour policy adjustments by nearby countries have all placed pressure on Laos’ monetary stability.
These challenges have contributed to inflation, exchange rate fluctuations, and higher prices for essential and imported goods, affecting the cost of living and prompting many Lao workers to seek employment abroad.
Despite these constraints, the Government remains committed to maintaining economic stability and achieving the 4.8% growth target by the end of 2025, according to the Lao PM./.
Lao parliament discusses new development, budget plans
During the NA's 10th meeting, Lao legislators are set to consider the implementation results of the 9th five-year socio-economic development plan (2021–2025), the draft 10th five-year plan (2026–2030), along with budgetary and monetary plans for 2025 and 2026.
