Lao PDR Economic Monitor, December 2017 : Lowering Risks and Reviving Growth
The Lao PDR Economic Monitor provides updates on macroeconomic developments and sectoral issues in the country. It is produced bi-annually and distributed widely to the government agencies, development partners, the private sector, think tanks, civ...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/677161512735183133/Lao-PDR-economic-monitor-lowering-risks-and-reviving-growth http://hdl.handle.net/10986/29030 |
| Summary: | The Lao PDR Economic Monitor provides
updates on macroeconomic developments and sectoral issues in
the country. It is produced bi-annually and distributed
widely to the government agencies, development partners, the
private sector, think tanks, civil society organizations,
and academia. Addressing macroeconomic risks remains a
pressing priority while improving environment for long-term
growth is a continuous agenda. To create a more stable
macroeconomic environment for reforms, maintaining fiscal
discipline and bolder steps towards fiscal consolidation is
of utmost importance at this stage. Growth is projected to
further moderate to 6.7 percent in 2017, below historical
averages, but towards a more sustainable level. Continued
expansion in power generation, manufacturing, and
agriculture are weighed down by slight deceleration in
investment, moderating credit growth, stronger controls over
government spending and lower-than-expected tourism
performance. Domestic demand also shows signs of slowing.
Still, compared to developing East Asia and Pacific (EAP)
and regional peers such as Cambodia, Thailand and Vietnam,
growth remains robust. Headline inflation further declined
in 2017, reflecting falling food prices and slowing
aggregate demand, amidst a gradual recovery in oil prices.
In this regard, the proposed 2018 best, only a modest
adjustment. More meaningful consolidation will require
stronger efforts to strengthening revenue collection through
improved tax administration, fiscal consolidation is of
utmost importance at this stage. |
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