VIENTIANE (Xinhua): Inflation in Laos is eroding living standards and reshaping the labor market, driving more people toward self-employment or migration to support their families, according to a World Bank survey.
The latest World Bank rapid monitoring surveys conducted from January to February revealed steady growth in employment across Laos.
The proportion of working respondents increased to 97.1 per cent in January, up from 94.4 pe rcent in June 2024 and 88.2 per cent in May 2022, Lao News Agency reported on Friday.
Inflation in Laos has steadily declined, said the report. The inflation rate fell to 15.5 per cent in January, down from 16.9 percent in December 2024, and further decreased to 11.1 percent by April.
However, after several years of persistent price increases, many households remain in a weakened financial position.
Labour migration continues, as many workers seek better opportunities and higher wages abroad.
Meanwhile, double-digit inflation continues to disproportionately affect low-income households, with many reporting hardship due to rising prices, according to the report.
To cope with high food costs, households are relying on savings, selling livestock or other assets, or taking on debt.
Many families have also reduced spending on health and education, leading to a higher likelihood of children from poorer households being out of school.
The Lao central bank is set to intensify efforts to address pressing economic and financial challenges to achieve a single-digit inflation rate within 2025, it added. E- Xinhua
