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Lao People's Democratic Republic Economic Monitor, April 2024: Accelerating Reforms for Growth - Thematic Section : Education for Growth and Development

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dc.contributor.authorWorld Bank
dc.date.accessioned2024-05-06T15:47:03Z
dc.date.available2024-05-06T15:47:03Z
dc.date.issued2024-05-06
dc.description.abstractEconomic growth remains below pre-COVID-19 levels, mainly owing to protracted macroeconomic instability. Economic growth is estimated at 3.7 percent for 2023, with positive contributions from the services sector (for example, tourism, transport, and logistics) and mining. Electricity generation, mostly from hydropower plants, was tempered by low rainfall. Meanwhile, foreign investment increased substantially, linked mainly to the electricity and mining sectors. In contrast, public spending and household consumption remained constrained by limited fiscal space and high inflation. Merchandise export growth was limited, affected by supply-side constraints (for example, labor shortages) and subdued external demand. Amid limited foreign exchange liquidity and high external debt service obligations, depreciation and inflationary pressures persist. In 2023, the annual average official kip/US dollar exchange rate weakened by 31 percent, while the average parallel rate depreciated by 27 percent. The parallel exchange rate premium was about 13 percent in March 2024. Depreciation appears to coincide with periods of large public debt service repayments, usually between March and September. Given the high import dependence, depreciation brings changes in domestic prices. Headline inflation averaged 31 percent in 2023 and remained at about 25 percent for eight consecutive months from August 2023, with food, transport, hotel, and restaurant price increases the main contributors. In 2024, real GDP is projected to grow by 4 percent as potential growth will remain constrained by structural challenges. This outlook assumes no new debt service deferrals in 2024 and beyond, while deferrals accumulated during 2020–2023 would continue to be deferred. Economic activity is expected to benefit from recovered performance in tourism, transport and logistics services, and investment in the power sector and some special economic zones. Despite the slight uptick this year, economic growth will remain below pre-COVID levels, weighed down by macroeconomic instability and structural constraints such as a shortage of skills, both in quality and quantity, and a challenging business environment.en
dc.identifierhttp://documents.worldbank.org/curated/en/099042724011042913/P1796281c1b7110881909c1e2a81cb81896
dc.identifier.doi10.1596/41505
dc.identifier.urihttps://hdl.handle.net/10986/41505
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by/3.0/igo
dc.subjectDECENT WORK AND ECONOMIC GROWTH
dc.subjectSDG 8
dc.subjectMACROECONOMIC STABILITY AND GROWTH
dc.subjectMACRO SHOCKS
dc.subjectMACROECONOMIC ANALYSIS OF ECONOMIC DEVELOPMENT
dc.subjectCOVID-19
dc.subjectGOOD HEALTH AND WELL-BEING
dc.subjectSDG 3
dc.titleLao People's Democratic Republic Economic Monitor, April 2024en
dc.title.subtitleAccelerating Reforms for Growth - Thematic Section : Education for Growth and Developmenten
dc.typeReport
dspace.entity.typePublication
okr.crossref.titleLao People's Democratic Republic Economic Monitor, April 2024: Accelerating Reforms for Growth - Thematic Section : Education for Growth and Development
okr.date.disclosure2024-05-06
okr.date.lastmodified2024-04-29T00:00:00Zen
okr.doctypeReport
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099042724011042913/P1796281c1b7110881909c1e2a81cb81896
okr.guid099042724011042913
okr.identifier.docmidP179628-c1b71180-dbca-4388-909c-e2a81cb81896
okr.identifier.doihttps://doi.org/10.1596/41505
okr.identifier.externaldocumentum34309751
okr.identifier.internaldocumentum34309751
okr.identifier.report189694
okr.import.id4074
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/099042724011042913/pdf/P1796281c1b7110881909c1e2a81cb81896.pdfen
okr.region.administrativeEast Asia and Pacific
okr.region.countryLao People's Democratic Republic
okr.sectorOther Public Administration
okr.themeMacroeconomic & Structural Policy Modelling,Job Creation,Investment and Business Climate,Human Development and Gender,Economic Policy,Trade Policy,Economic Growth and Planning,Disease Control,Private Sector Development,Pandemic Response,Jobs,Business Enabling Environment,Trade
okr.topicMacroeconomics and Economic Growth::Economic Investment & Savings
okr.topicMacroeconomics and Economic Growth::Economic Growth
okr.topicHealth, Nutrition and Population::Communicable Diseases
okr.topicIndustry::Industrial and Consumer Services and Products
okr.unitEFI-EAP-MTI-MacroFiscal-1 (EEAM1)
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