GDP Expected To Grow At 6.8 Percent: IMF

The International Monetary Fund (IMF) has predicted that Laos’ Gross Domestic Product (GDP) will grow at 6.8 percent this year, less than the government’s projected rate of 7 percent.
The IMF Executive Board concluded the Article IV consultation [1] with Laos recently, describing Laos’ challenges in dealing with the current account deficit, falling foreign currency reserves, and growing ….

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Poverty Reduction Slows

Poverty reduction has slowed a little but the government will strive to reduce the number of poor families from 6.56 percent in 2016 down to 6.09 percent by 2017, the government has told the National Assembly.
There are four main reasons for the slower rate of poverty reduction, Minister of Planning and Investment Dr Souphanh Keomixay told the ongoing ordinary session of parliament when he presented a …..

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Revised Govt Plan To See Bigger Budget Deficit

The government’s proposal to revise the next four-year budget plan (2017-2020) will see the budget deficit increase to 4.39 percent of gross domestic product (GDP), up by 0.32 percent compared to the four-year plan approved earlier by the National Assembly (NA).
Deputy Prime Minister and Finance Minister Somdy Duangdy presented the proposed plan to the ….

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Revenue Shortfall Drives Budget Deficit Abnormally High

Revenue collection for this fiscal year reached only 95 percent of the annual plan, driving the budget deficit to 6.9 percent of gross domestic product (GDP), higher than the maximum of five percent usually adopted by the government.
Economists have warned that such high deficits will increase public debt, with the country having already accumulated considerable debt that will ….

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Five-Year Budget Approved, Deficit Continues

The National Assembly (NA) approved the state budget plan for the next five years (2016-2020) last week, which will include a budget deficit of 27,119 billion kip.
The deficit is in line with the parliament’s approval of the five-year plan that sets the deficit at 3.6 percent of Gross Domestic Product (GDP) with the maximum deficit not to …..

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Growth To Moderate At Around 7 Percent: ADB Report

A new Asian Development Bank (ADB) report predicts that Laos will maintain relatively robust growth in 2015 and 2016, supported by the expansion of hydropower and services.
Growth is expected to moderate to about 7.0 percent in 2015 due to continued weakening domestic demand in some sectors, before picking up to 7.2 percent in 2016, according to the recently released ADB report.
“The Lao economy remains a strong performer in the region with Gross Domestic Product (GDP) growth in 2014 recorded at …

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Vientiane Owns Up To 237 Billion Kip Debt

Vientiane authorities revealed last week the capital owes 237.22 billion kip (more than US$30 million) to investors who funded 118 projects, mainly in infrastructure development.
Under agreements with Vientiane authorities, project contractors invested in the projects upfront with Vientiane to repay the construction cost from the state budget at a later date. This arrangement is normal procedure for government development projects carried out amid budget constraints. However, such schemes are one of the main reasons the government has accumulated a large debt in recent years, which it is now struggling to repay.
Laos repays debt at 7.5 percent of domestic revenue and 3 percent of export revenue. It is expected the debt will …….

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Govt Working To Manage The Country’s Debts

The government is committed to imposing measures and mechanisms to manage the country’s debts while exploring new sources of revenue and reducing loans for unnecessary expenditure.
The Lao Minister of Finance reaffirmed that the government will try to keep the debt levels at less than 40 percent of GDP, while the value of debt payment should not more than 20 percent of the value of exports and domestic revenue…..

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Economists Project Strong Eonomic Growth In Laos

Economic growth in 2012-13 should reach 8.3 percent if government and foreign investment projects are implemented as planned, according to the National Economic Research Institute (NERI).
The figure was reported yesterday at the ‘Lao Economy in 2012 and Outlook for 2013′ meeting, organised by the institute with support from the World Bank. The economy should continue to grow by 8.2 percent in 2013-14 and 14-2015, according to the NERI.
GDP per capita reached 10.8 million kip (about US$1,349). The agricultural sector grew by 2.8 percent, accounting for 26.7 percent of GDP; the industrial sector grew by ….

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