Lao People’s Democratic Republic: Asian Development Bank Member Fact Sheet 2018

Abstract

The economy of the Lao People’s Democratic Republic (Lao PDR) has grown by an average of more than 7% per annum over the past 5 years, however, much work remains to resolve the country’s development challenges. Under its Eighth National Socioeconomic Development Plan, 2016–2020, the Lao PDR is aiming for inclusive economic growth, human resource development, and sustainable natural resource management to graduate from least-developed country status in 2024. While the Lao PDR is rich in natural resources and has dynamic mining and hydropower industries, economic diversification is needed to expand private sector investment, generate employment in services and industry, and promote regional cooperation and integration. As for macroeconomic management, the Government of the Lao PDR has made efforts to contain the growing fiscal deficit and the increasing public debt by enacting the Public Debt Management Law in August 2018. Further steps are needed to reduce the fiscal deficit and improve the country’s public debt sustainability from its current distress situation.