Economic growth rebounding but further reform needed: World Bank
The World Bank is optimistic about economic growth in Laos, which is projected to rebound to 6.5 per cent in 2019, rising from 6.3 per cent recorded last year.
Despite continued fiscal tightening, the pickup is expected to be driven by robust investment in mega infrastructure projects including the Laos-China railway, according to the latest edition of the World Bank’s Lao Economic Monitor released yesterday.
Economic growth will also be driven by a resilient services sector led by wholesale and retail growth associated with robust construction.
Meanwhile, the government remains committed to fiscal consolidation to contain public debt in the medium term by tightening public spending and improving revenue administration.
This should result in a decline in the fiscal deficit from 4.4 percent of GDP in 2018 to 4.3 percent this year.
Somsack Pongkhao
