Sound Public Financial Management Key to Economic Recovery in Lao PDR
The economy of the Lao PDR is forecast to grow 3.4% this year and 3.7% next year thanks to the country’s investments to boost exports, according to the Asian Development Outlook (ADO) 2022 released by the Asian Development Bank (ADB) on Apr 6.
Rising oil prices and the depreciation of the kip, which led to 5.3% inflation in December 2021, may push the country’s average rate of inflation to 5.8% in 2022 and 5.0% in 2023. Inflation will add to the country’s debt distress, which is already at high risk.
The report urges the government to boost transparency in the management of external public debt, which will help open doors for the Lao PDR to access sustainable development finance.
KPL
