Lao PDR Economic Monitor, August 2019 : Maintaining Economic Stability
Economic growth in Lao PDR is projected to rebound to 6.5 percent in 2019, up from 6.3 percent in 2018. This pick up is expected to be driven by growth of the construction sector supported by investments in large infrastructure projects, and a resi...
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| Format: | Report |
| Language: | English |
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World Bank, Vientiane
2019
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| Online Access: | http://documents.worldbank.org/curated/en/604471565799670466/Lao-PDR-Economic-Monitor-Maintaining-Economic-Stability http://hdl.handle.net/10986/32246 |
| Summary: | Economic growth in Lao PDR is projected
to rebound to 6.5 percent in 2019, up from 6.3 percent in
2018. This pick up is expected to be driven by growth of the
construction sector supported by investments in large
infrastructure projects, and a resilient services sector,
led by wholesale and retail trade growth. The Government has
remained committed to fiscal consolidation to contain public
debt in the medium term by tightening public expenditure and
improving revenue administration. The medium-term outlook
remains broadly favorable, but subject to downside risks
from heightened uncertainty in the global and domestic
environments. Prolonged trade partners, and spillover to the
domestic economy through lower trade and investment, and
reduced prices for key export commodities. The authorities
may face difficulty in responding to such economic shocks
given the low level of foreign currency reserves and
significant external public debt. A priority is therefore to
create fiscal space through improving tax policy and
administration as well as build up reserve buffers to
respond to shocks. Additionally, improving the business
environment and reversing the decline in the global ranking
of the ease of doing business, particularly for small and
medium-sized enterprises, could also contribute to greater
macroeconomic stability, job creation and poverty reduction. |
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