Publication: Lao Peoples Democratic Republic - Systematic Country Diagnostic Update
Date
2022-06-30
ISSN
Published
2022-06-30
Author(s)
World Bank
Abstract
This Systematic Country Diagnostic
(SCD) updates the analytical work of the 2017 SCD in the
light of new evidence. In 2017, the World Bank Group (WBG)
published the first SCD for the Lao PDR, which
comprehensively assessed the binding constraints to economic
growth, inclusion, and sustainability. This SCD uses recent
evidence to describe developments since 2017, revisit the
previous pathways and priorities for achieving the twin
goals of ending extreme poverty and boosting shared
prosperity, and update knowledge and data gaps. It
identifies the most pressing development challenges
supported by new data and analytical work and emerging
opportunities.Recent evidence suggests that poverty has been
reduced but income inequality is increasing. The economy
continued to grow strongly between 2017 and 2019 at an
average of 6.2 percent per year, albeit at a slower pace
than in the preceding three years. Economic growth declined
dramatically to 0.5 percent in 2020 owing to the COVID-19
pandemic. The national poverty rate fell from 24.6 percent
in 2012 to 18.3 percent in 2018. The standard of living has
also improved, with notable gains in access to basic
services, education, and health outcomes. However, poverty
remains high compared to regional peers and is concentrated
among subsistence farmers and minority ethno-linguistic
groups. Inequality continues to rise as rapid growth has
been jobless. The Gini index increased from 36.0 to 38.8
between 2012 and 2018, and the shared prosperity premium was
negative (consumption per capita among the bottom 40 percent
grew by 1.9 percent per year compared to 3.3 percent for the
total population).
Citation
“World Bank. 2022. Lao Peoples Democratic Republic - Systematic Country Diagnostic Update. © Washington, DC: World Bank. http://openknowledge.worldbank.org/handle/10986/37652?show=full License: CC BY 3.0 IGO.”