Macroeconomic Forecast Laos

July 2008 | Macroeconomic Forecasts

BMI View: GDP growth should remain high in the coming years as Laos profits from a strong demand for its energy and natural resources. Moreover, signs of an increasing willingness to implement market reform bare the promise of higher growth in the longer term, as the Laotian government attempts to follow the path of China and Vietnam. We have thus raised our growth forecast for Laos from 7.0% to 7.5% for the coming five years, with exports and foreign direct investment being the main engines of growth. We foresee inflation trending upwards in 2008 on contagion from rapid price growth in neighbouring countries, but remaining at around 5% over the remainder of our forecast period.

If you would like to subscribe to South East Asia Monitor Vol 1 and gain instant access to this article, please click here to subscribe.

If you would like to take a trial to South East Asia Monitor Vol 1 please click on the trial link below.