Private investment needed to drive growth: economists
Economists have cautioned that cutting spending could impact Laos’ economic growth, so the government needs to further create favourable conditions to strengthen the private sector. According to the government’s recent report, investment by domestic and foreign businesses represented more than half the entire investment driving the country’s economic growth. A senior economist at the National Economic Research Institute, Dr Leeber Leebuapao, told Vientiane Times on May 16 that investment by the private sector is critical for the growth of the economy.
“Cutting spending will impact our economy, but if we can attract more investment I think we can sustain growth,” said Dr Leeber, who is member of the National Assembly.
