Sustaining Growth, Maintaining Macroeconomic Stability : Lao PDR Economic Monitor, June 2013
The Lao economy is projected to grow at 8 percent in 2013. The hydropower sector (both completed projects in operation and projects in the construction or development phase), construction, food processing, and services sectors remain the major cont...
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| Format: | Economic Updates and Modeling |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2013/06/17956382/lao-pdr-economic-monitor-sustaining-growth-maintaining-macroeconomic-stability http://hdl.handle.net/10986/16594 |
| Summary: | The Lao economy is projected to grow at
8 percent in 2013. The hydropower sector (both completed
projects in operation and projects in the construction or
development phase), construction, food processing, and
services sectors remain the major contributors to this
growth. Overall inflation has risen considerably since the
end of 2012, due to a notable increase in non-rice food
prices. The fiscal deficit as a ratio to gross domestic
product (GDP) is expected to widen in FY2012-2013.
Therefore, containing aggregate demand through fiscal and
credit growth management is essential to maintain
macroeconomic balances while exchange rate management needs
to be measured given the pressures on reserves and
competitiveness. As the banking sector continues to expand
and credit growth remains relatively high, bank supervision
capacity needs to be strengthened. Lao People's
Democratic Republic's (PDR's) robust economic
performance and expansionary fiscal policy calls for a
bolder investment in social sector spending. This paper is
divided into following two parts: part one gives recent
economic developments; and part two presents sector focus. |
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