National economic body predicts 2014 growth of 7.8 percent
National economic body predicts 2014 growth of 7.8 percent
The Lao economy is projected to grow by 7.8 percent for the fiscal year 2013-14 which if true means it will fall short of the planned 8.3 percent, according to the Lao National Economic Research Institute (NERI).
“The reason why the growth in the economy is lower than expected is because a majority of the large investment projects are as yet unfinished while gold production at Sepon Mining project has ceased,” the institute's Director General, Dr Leeber Leebouapao said.
He commented that despite the projected slowdown, overall Lao macroeconomic stability remained satisfactory .
The Lao macroeconomic report 2013 and the outlook for 2014 highlighted some important achievements over the past fiscal year.
This annual report and outlook conference was organised by the Lao National Economic Research Institute and funded by the office of the World Bank in Laos.
According to the 2013 macroeconomic report prepared by the NERI and the Ministry of Planning and Investment, Laos enjoyed rapid Gross Domestic Product (GDP) growth in excess of 8 percent over the past year, among the highest growth rates in Asia.
In 2013, GDP per capita grew to exceed an average of more than 12 million kip (US$1,543). Dr Leeber pointed out that the service sector grew faster than other sectors, which saw 9.6 percent growth accounting for more than 38 percent of GDP.
Meanwhile, the industry sector was in second place with 7.42 percent growth but it is still considered as having experienced comparatively slow growth since the fiscal year 2007-08.
The agricultural sector came in third with a modest growth rate of 3.14 percent, but it still accounts for over a quarter of GDP.
The report also forecast that in the year 2014-15, the Lao economy will grow by up to 8.2 percent because of new economic factors, especially the increased production of the electricity sector.
Several mega hydropower projects such as Xekaman 1 hydropower plant, Nam Khan hydropower project, Huay Lam Phan project and Hongsa Lignite plant will be a key factor to boosting energy production and export incomes over the years to come, according to the report.
The Lao macroeconomic report for 2013 and outlook for2014 also advised the relevant government sectors to focus on supporting the management of the macroeconomic balance to ensure the stability of prices of goods and to continue maintaining debt and other unsolved issues.
Meanwhile, the Asian Development Bank (ADB) has forecast that the Lao economy will see growth of 7.3 percent, which is slightly less than the Lao National Economic Research Institute.
However, ADB senior economists confirmed this week that the Lao economy was still one of the top performers in the region in terms of economic growth.
Deputy Minister of Planning and Investment, Dr Bounthavy Sisouphanthong was present at yesterday's meeting along with other representatives from the public and private sectors and international bodies in Laos.
vientiane times
