Lao People’s Democratic Republic: Asian Development Bank Member Fact Sheet 2017

Abstract

Although its economy continues to grow vigorously, the Lao People’s Democratic Republic (Lao PDR) is not without its development issues. The country is rich in resources and has dynamic mining and hydropower industries, but economic diversification is needed. The Government of the Lao PDR must strive for strong macroeconomic management, including foreign debt control, a sound fiscal framework, and effective budget management. While the government has consolidated expenditures to contain the national deficit, it needs to increase fiscal and foreign reserves to absorb any future shocks. Under its Eighth National Socio-Economic Development Plan, 2016–2020, the Lao PDR is making efforts to become eligible to graduate from least developed country status by 2020.