Laos’s economic growth is predicted to achieve 6.9 percent in 2019-20, in accordance with the most recent World Bank report on the region’s economy.
According to the World Bank’s latest update in September, economic growth is predicted to speed up in 2019-20, driven by increased energy production, growing opportunities in non-resource sectors resulting from closer regional integration, and reforms to enhance the business environment.
Economic growth is forecast to slow to six.7 percent in 2018 (from 6.9 percent in 2017), but will remain solid compared with peer regions.
Laos is classed by the World Bank as certainly one of the smaller East Asia and Pacific (EAP) countries. Economic growth prospects remain solid, averaging greater than six percent per yr from 2018 to 2020.
Meanwhile, growth forecasts for EAP development remain positive despite the less favourable external environment.
Yesterday, the October edition of the World Bank’s East Asia and Pacific report, “Navigating Uncertainty,” was released, highlighting that in recent months, a mixture of trade tensions, higher US rates of interest, a stronger US dollar and financial market volatility in lots of emerging economies have increased uncertainty concerning the region’s growth prospects.
At the identical time, inflation began to rise across the region, especially in Myanmar, the Philippines and Vietnam.
China is predicted to see growth moderately slow to six.5% in 2018, following faster-than-expected growth in 2017. Growth in developing EAP countries excluding China is predicted to stay stable at 5.3% between 2018 and 2020, driven mainly by domestic demand.
In Thailand and Vietnam, growth is predicted to be solid in 2018, before slowing in 2019 and 2020 as stronger domestic demand only partially offsets moderation in net export growth. Growth in Indonesia is predicted to be stable, because of improved prospects for investment and personal consumption.
In the smaller EAP economies, growth prospects remain solid, averaging greater than six per cent a yr between 2018 and 2020 in Laos, Cambodia, Mongolia and Myanmar.
Source : Financial | Vientiane Times
