VIENTIANE, April 9 (Xinhua) -- The Asian Development Bank (ADB) has forecast a moderate economic growth for Laos, projecting a 3.9 percent increase in 2025 and 4 percent in 2026, with logistics and tourism services serving as key drivers of the country's growth.
According to an ADB report on Wednesday, ADB Country Director for Laos Shanny Campbell stressed the importance of strengthening fiscal management, human resource development, and renewable energy to ensure long-term economic resilience in Laos, especially in light of global uncertainties.
Tightened monetary policies have helped stabilize the Lao kip and inflation, which averaged at 23.1 percent in 2024. Inflation is expected to ease to 13.5 percent in 2025 and 10.4 percent in 2026, though foreign currency-denominated debt and rising electricity tariffs may exert pressure on prices.
Investments in renewable energy and mining are expected to boost the industry, with export values for electricity, minerals, and agricultural products projected to increase. However, agriculture faces challenges such as climate change, labor shortages, and low commodity prices. The report also highlighted external risks, including potential tariff hikes by the United States, which could affect Laos and its key trading partners.
Additionally, the report noted that tightened fiscal policies have led to reduced spending on health and education, impacting human capital and productivity. It stressed the need for comprehensive public financial management reforms to address challenges in these critical sectors. ■
