VIENTIANE (Agencies): Laos’ economy expanded 5 per cent in the first half of 2026, helped by a strong tourism season and growth in services, but slowed in the second quarter as the government works to meet its 6 per cent target for the year.
Growth reached 5.5 per cent in the first quarter before easing to 4.6 per cent in the second, according to figures released by the Ministry of Finance at its mid-year review meeting on 24 August, according to local press reports.
Tourism has been one of the brighter spots. Nearly 2.6 million international visitors arrived in Laos during the first six months of the year, a 9.9 per cent increase from the same period in 2025. The government is hoping to attract between 5 million and 6 million visitors by the end of the year.
The services sector is expected to grow 7.1 per cent this year, making it the fastest-growing part of the economy, followed by industry at 5.7 per cent and agriculture at 4.1 per cent.
The government collected LAK 44,956 billion (US$2.01 billion) in revenue during the first half, up 19 per cent from the same period last year and putting it more than halfway toward its annual target.
For Laos, however, the 6 per cent growth goal is about more than this year’s economic performance. The country is preparing to graduate from the United Nations’ Least Developed Country category at the end of 2026, while the government has set a broader goal of maintaining at least 6 per cent annual growth through 2030.
Officials project that GDP per capita will reach US$3,104 and gross national income per capita US$2,914 by 2030.
The first-half figures put Laos behind several of its regional neighbours.
Vietnam’s economy grew 8.2 per cent during the same period, while Singapore, Malaysia and Indonesia recorded growth of 6.1 per cent, 5.7 per cent and 5.5 per cent, respectively. Thailand and the Philippines grew more slowly, at 2.4 per cent and 2.6 per cent.
The Finance Ministry said the economy generated LAK 199,987 billion (US$8.92 billion) in the first six months, equivalent to 48 per cent of the government’s full-year output target of LAK 417,523 billion (US$18.62 billion).
