Economist forecasts 10 percent rise in consumption over Lao New Year
Economist forecasts 10 percent rise in consumption over Lao New Year
The consumption of food and alcoholic drinks in Laos is expected to surge over the Lao New Year this month, according to a senior economist.
Director General of the Lao National Economic Research Institute, Dr Liber Leebuapao, said this week he expected that from April 14-17 consumption would rise by at least 10 percent, giving businesses and street vendors a special opportunity to fill their pockets and top up their bank accounts.
“The demand for food and drinks such as beer will rise by at least 10 percent compared to normal because Lao people are in general better off this year,” he said. “Higher consumption will in turn enable vendors to earn more money over the New Year holiday.”
Dr Liber said the main reasons for the increase in consumption are the growing population and strong economic growth.
According to a report from the Ministry of Planning and Investment, the of the population was 6.5 million in 2012, up from 6.3 million in 2011. The economy has grown by at least eight percent annually in recent years, with the mining and hydropower sectors the main engines of growth.
Dr Liber said the gover nment had increased the minimum wage for private sector employees and also increased the salary of government workers, so these groups were earning more money and would be happy to spend some of their saving during the week long celebration.
A large number of people, especially new graduates, have found jobs, so they are in a position to spend some of their earnings over Lao New Year, he added.
The report from the planning ministry shows that about 160,000 new jobs have been created over the past two years thanks to d omestic and foreign investment.
Dr Liber urged vendors to stock up with sufficient supplies of goods over the New Year to ensure they could meet the rise in demand.
He also said the government should pay more attention to pricing, especially of food, drinks and entertainment, over the festive season and ensure prices remained stable.
Commercial banks such as BCEL, Phongsavanh and ST have prepared cash for their ATM machines to ensure that customers will be able to withdraw money to spend over the New Year.
A bank official said they expected there would be a greater demand for money than in previous years because people were earning more.
Average income per capita stood at US$1,332 in 2012 and is expected to reach US$1,494 in 2013, according to the planning ministry's report.
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