VIENTIANE, Loas Laos’ economy continues to perform well, supported by a favourable external environment and strong flows of foreign direct investment from its dynamic neighbours, Lao news agency (KPL) reported, citing the Executive Board of the International Monetary Fund (IMF).
Growth in 2017 was supported by the expansion of electricity exports, construction activity and financial services, but moderated to 6.8 per cent as a result of the prohibition on illegal logging, tighter credit conditions and fewer tourist arrivals.
Inflation remained low at 0.2 per cent in Dec last year, reflecting a stable exchange rate and a decline in food prices.
Private sector credit growth was robust at 17 per cent year-on-year in 2017, a pace consistent with dynamic economic activity and moderate financial deepening.
The current account deficit was high at 13 per cent of GDP in 2017, although it is estimated that about half the deficit reflected imports related to large foreign direct investment projects, including the Kunming-Vientiane railway project, which is part of China’s Belt and Road Initiative.
Source: NAM News Network