Laos sets economic growth target of 4.5% for 2023

Laos sets economic growth target of 4.5% for 2023 (Photo: VNA)

Vientiane (VNA) - Despite the global economic downturn, the National Assembly of Laos has set an economic growth target of at least 4.5% for 2023 as proposed by the Government.

According to the Lao Government, the country's agricultural sector is expected to grow by about 2.5% in 2023, accounting for 17.2% of Gross Domestic Product (GDP), while the industry will enjoy a 5% growth, accounting for 34.2% of GDP.

The service sector is projected to grow at 4.7%, accounting for 37.5% of GDP, while contributions from tariffs and taxes are to grow 4.3%, accounting for 11.1% of GDP.

The value of GDP is forecast to see an upward trend of 234,160 billion kip (13.5 billion USD) by the end of the year, with  per capita GDP of 1,625 USD and per capita gross national income (GNI) of 1,534 USD.

Lao Minister of Planning and Investment Khamjane Vongphosy said the Government has committed to keep the inflation ceiling of below 9% in 2023.

In the past few years, the Lao domestic currency, the kip, has continued to depreciate, leading to an increase in foreign debt, because Laos has to spend more to buy foreign currency to pay national debt.

In 2022, per capita GNI of Laos only reached 1,729 USD, lower than the 2,358 USD approved by the National Assembly.  It decreased from 2,161 USD in 2020 and 2,004 USD in 2021 due to the depreciation of the kip./.