Laos strengthens finance to drive growth, maintain financial stability


- Illustrative photo.

VIENTIANE: Laos is reinforcing its efforts to maintain fiscal and monetary stability to support economic growth and improve people's wellbeing while expanding access to modern financial services.

Speaking at a press conference following the government's monthly meeting in mid-December, government spokesperson Sonexay Sitphaxay said the government is close to meeting its 2025 revenue target while keeping inflation under control, signaling steady fiscal management amid regional and global uncertainties.

The country's inflation fell to 4.8 per cent in November, with an 11-month average of 7.9 percent.

The meeting acknowledged challenges, including the high cost of living, exchange rate pressures, and high production costs, and approved seven draft decrees, including measures on financial crisis prevention.

To maintain monetary stability, the Monetary Policy Committee of the Bank of the Lao PDR has outlined several measures for future policy.

The bank will cut its 7-day base interest rate from 9 per cent to 8.5 per cent.

Furthermore, the bank will continue to work closely with fiscal authorities to ensure that all policy measures remain aligned and responsive. - Xinhua

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