AEIR 2021

Lao People’s Democratic Republic

Real GDP contracted by 0.5% in 2020 after growing by 4.7% in 2019, largely due to the COVID-19 pandemic. Severe border restrictions stifled domestic and external demand. The unemployment rate rose to 23.4% in 2020 from 16.0% in 2018. Services, accounting for 43.6% of GDP, contracted by 5.5% as tourism stopped. Industry (30.8% of GDP) grew by 6.2% due to higher electricity production; construction grew as large infrastructure projects proceeded; and agriculture (15.5% of GDP) grew by 2.1% on improved harvests. Inflation rose to 5.1% from 3.3% in 2019, mostly due to rising food prices. The budget deficit increased to 5.3% of GDP from 3.3% in 2019. Real GDP is expected to grow by 4.0% in 2021 and 4.5% in 2022 on higher agriculture production, sustained power generation, and ongoing large infrastructure projects offsetting the effects of a slow recovery in services.

Source: Asian Development Outlook 2021.
Latest Month-Ago Year-Ago
Composite Stock Price Index 1 618.7 (Oct21)643.1 580.3
Broad Money Growth 2 16.1 (Jun21)16.1 17.5
Headline Inflation Rate 3 4.2 (Sep21)3.8 4.7
Merchandise Export Growth 3 15.4 (Jul21)15.4 65.6
Exchange Rate Index 4 94.7 (Oct21)90.8 86.5
1 Monthly average, local index.
2 %.
3 y-o-y, %.
4 Monthly average, January 2006 = 100, $/local currency.
Source: Bloomberg LP; CEIC database.

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