ADB lowers ‘Laos Economy’ forecast in 2022 to 2.5%

Downgrade the economic growth outlook for Laos this round. It is associated with supply disruptions and higher commodity prices. which increases inflationary pressures And it comes amid sluggish global demand and tighter monetary policy to tackle the inflationary crisis.

The bank said most Lao businesses had resumed normal operations in the first half of 2022 and the number of foreign tourists entering the country had started to improve. However, the volatility of commodity prices, particularly oil, has increased the cost of living. This caused the domestic consumption sector to stagnate, while sharp increases in the prices of fertiliser, feed, food and fuel hampered agricultural and production activities. These trends slowed the economic recovery.

In addition, the bank added that rising commodity prices affect the living conditions of households in Laos. especially the poor This poses a risk to food security and nutrition for families. It also creates many challenges for people. including the public treasury
credit: Xinhua

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