Vientiane (VNA) - Lao Prime Minister Sonexay Siphandone announced that the country's economy expanded by an average of 5% in the first six months of 2026, saying growth reached 5.5% in the first quarter before moderating to 4.6% in the second quarter.
Speaking at the first extraordinary session of the 10th National Assembly, the PM said state budget revenue reached 44,956 billion LAK (2.1 billion USD), equal to 54% of the total target for 2026 and 19% higher than the same period last year.
The service sector led growth at 5.3%, followed by industry at 5.1% and agriculture at 4.3%.
The value of foreign trade reached 10.11 billion USD during the first half of the year, although down by 10.2% from the same period in 2025. Exports totalled 5.63 billion USD while imports were valued at more than 4.47 billion USD, generating a trade surplus of nearly 1.16 billion USD.
The decline in exports was mainly due to a 60.5% fall in solar panel exports after the US raised import tariffs.
The PM said the government would focus on maintaining macroeconomic stability and accelerating growth. Another goal is to raise per capita gross national income to about 2,238 USD by the end of the year.
To support growth, the government plans to increase exports from key sectors. Hydropower projects will operate at full capacity during the rainy season to generate electricity exports worth 2.83 billion USD. Mineral exports are expected to reach 2.18 billion USD, while agricultural exports are targeted at 1.9 billion USD through greater processing and higher-value production.
The Lao government's strategic adjustment is aimed not only at addressing the current export slowdown but also at building a more resilient economic foundation by reducing the country's overreliance on any single market or industry. The move is widely seen as a crucial step toward putting the Lao economy on a path of more sustainable long-term growth./.
