Growth forecast for Laos set at 8%

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laos china borderThe World Bank has forecast 8 per cent GDP growth for Laos in 2013, driven mainly by mining and hydropower projects, despite the country’s recent financial difficulties.

The East Asia and Pacific Update, a bi-annual review of regional economies released by the Bank on October 7, is optimistic the Lao economy will continue to grow at a strong rate at 7.7 per cent in 2014 and at 8.1 per cent in 2015.

Prospects for the region’s small economies have markedly improved, the World Bank says. In Laos, the Theun Hinboun hydropower expansion and other projects have this year started commercial operations, driving the country’s economic growth.

In 2011, Laos recorded 8 per cent growth while in 2012 the country reached 8.2 per cent, according to the report. However, Laos is still facing a number of challenges including rising debt and inflation. In July alone, inflation rose to 7.4 percent.

Following a recent meeting between the government and provincial governors, government spokesperson Bounpheng Mounphosay told local media the inflation rate in Laos could exceed the rate of economic growth in the near future despite government measures to curb inflation.

Meanwhile, the International Monetary Fund (IMF) has warned Laos must tighten its policies to avoid a major economic crisis.

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Reading Time: 1 minute

The World Bank has forecast 8 per cent GDP growth for Laos in 2013, driven mainly by mining and hydropower projects, despite the country’s recent financial difficulties.

Reading Time: 1 minute

laos china borderThe World Bank has forecast 8 per cent GDP growth for Laos in 2013, driven mainly by mining and hydropower projects, despite the country’s recent financial difficulties.

The East Asia and Pacific Update, a bi-annual review of regional economies released by the Bank on October 7, is optimistic the Lao economy will continue to grow at a strong rate at 7.7 per cent in 2014 and at 8.1 per cent in 2015.

Prospects for the region’s small economies have markedly improved, the World Bank says. In Laos, the Theun Hinboun hydropower expansion and other projects have this year started commercial operations, driving the country’s economic growth.

In 2011, Laos recorded 8 per cent growth while in 2012 the country reached 8.2 per cent, according to the report. However, Laos is still facing a number of challenges including rising debt and inflation. In July alone, inflation rose to 7.4 percent.

Following a recent meeting between the government and provincial governors, government spokesperson Bounpheng Mounphosay told local media the inflation rate in Laos could exceed the rate of economic growth in the near future despite government measures to curb inflation.

Meanwhile, the International Monetary Fund (IMF) has warned Laos must tighten its policies to avoid a major economic crisis.

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