VIENTIANE: The recent financial hardship experienced by many communities across the country is easing as the economy begins to show signs of recovery.
After a prolonged period of inflation largely caused by the Covid-19 pandemic and global economic fluctuations, trade in markets has started to normalise and concerns over unusually high prices linked to exchange rate volatility have eased in many areas.
Traders at the Lao Market on the 450 Year Road in Vientiane told the Vientiane Times on Tuesday (Jan 13) that people are coming to buy food in their usual numbers. However, they noted that during times of high inflation many shoppers complained about the spiralling price of fresh produce and other daily necessities.
According to traders, the higher price of meat, fish, poultry, vegetables and other goods was largely driven by increased costs for vendors, a situation reflected in markets nationwide.
A middle-aged shopper, who asked not to be named, said she regularly visits the market because of the wide variety of fresh produce available.
“At first, the price increases were hard to cope with because I had to spend more money to buy the same amount of food, which meant less food for my family,” she said. “But over time I have adapted to the situation.”
Overall, economic activity in markets, communities and urban areas has become more vibrant.
Small businesses, trade and service sectors are slowly regaining momentum, creating more employment opportunities and sources of income for households. Many families have resumed their livelihoods, particularly in agriculture, small-scale commerce, services, and tourism-related activities.
At the same time, the government is continuing to roll out measures aimed at stabilising the economy and supporting sustainable growth.
These include promoting domestic production, encouraging import substitution, supporting small and medium-sized enterprises, and strengthening economic management.
Despite these positive developments, challenges remain. The cost of living is continuing to rise and the high price of some essential goods will inevitably continue to put pressure on household budgets. Nevertheless, public confidence is improving, with many people expressing renewed hope for their livelihoods and economic prospects.
The gradual economic recovery is widely regarded as a key foundation for improving quality of life and strengthening social stability as the country moves towards steady and sustainable development.
Over the 2026-2030 period, the Lao People’s Revolutionary Party aims to ensure political stability, social peace and national unity, safeguard independence and sovereignty, graduate from Least Developed Country status and tackle the country’s economic and financial challenges.
A target figure of six per cent has been set for the annual GDP growth rate, alongside efforts to promote sustainable development and gradually transform Laos from a consumer-oriented society into a production-oriented one. - Vientiane Times/ANN
