Growth to continue but economy faces significant risks
Economic growth in Laos will remain buoyant however the region still faces significant risks to growth, according to a new World Bank report. The outlook of the Lao economy remains favourable overall but with increasing downside risks GDP growth is projected to remain at around seven percent in 2017 and 2018, supported by the healthy pipeline of power projects and growing opportunities for the non-resource sector resulting from closer ASEAN integration and efforts to improve investment climate reforms. Higher power exports and continuation of recent trends in agriculture and manufacturing is expected to improve the external balance. However, the risks have increased the outlook on commodity prices and development needs may continue to weigh on the fiscal position and public debt in the near term.
