Macroeconomic Forecast Laos

March 2006 | Macroeconomic Forecasts

We estimate that the economy grew 7.3% in 2005 and will maintain a high growth rate of 7% in the year ahead. Transition towards a market economy and healthy growth in exports should help Laos towards this rapid growth rate. In particular, exports to the US should have risen in 2005 and should continue to do so in 2006, due to the granting of normal trade relations to Laos in 2004, which gave Lao exporters direct access to the US market. Exports to rapidly growing China are also expanding at an estimated rate of 13.6% per annum. The downside risks to our scenario include the threat of avian flu and the prevalence of high oil prices

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