VIENTIANE (Xinhua): Laos' economy is expected to expand moderately in 2024 and 2025, driven by external demand linked with tourism and trade, according to the Asian Development Bank (ADB).
According to the ADB's Asian Development Outlook released on Thursday, Laos' gross domestic product (GDP) is expected to grow by 4 percent in both 2024 and 2025.
This growth will be supported by external demand, particularly in the service sector. Notably, international tourist arrivals are projected to increase to 4.2 million in 2024 thanks to improved infrastructure connectivity.
Additionally, foreign investment in renewable energy projects, including the Monsoon Wind Power Project, is set to drive moderate industrial growth, with completion expected in 2025.
Despite economic growth, the ADB has said that the persistently rising inflation rate, the weak Lao currency kip, and public debt remain significant challenges for further development.
The ADB stated that rising inflation, which has driven up the price of food, and hotel and restaurant services, has outpaced wage growth, leading to a decline in household purchasing power. - Xinhua
