The Lao economy is on course for moderately improved growth in 2021, despite the second wave of COVID-19 denting the promising economic recovery made early in the year. The World Bank’s latest Economic Monitor for Lao PDR — A Path to Recovery —predicts that GDP growth will rise to 3.6 percent in 2021, against a figure of 0.5 percent in 2020.
“Lao PDR is doing well to contain the coronavirus and get vaccinations out across the population”, said Alex Kremer, the new World Bank Country Manager. “However, the risk of debt distress, a weak kip, and low government revenues continue to limit the government’s options for reviving the economy. Reforms that would boost private investment, tax payments, and trade would help in this matter.”