Party confident of 8 percent GDP growth
Party confident of 8 percent GDP growth
The Lao People's Revolutionary Party is confident that strong economic growth will continue in the next few years, while it is predicted that the rate will be maintained at or above 8 percent.
Head of the Party Central Committee's P ropaganda and Training Board, Mr Cheuang Sombounkhanh, made the comment during a briefing held on Saturday to discuss the implementation of the resolution passed by the 9th Party Congress.
“As economic growth has been above 8 percent per year over the past two-and-a half years, we are confident we can achieve the target of at least 8 percent per year in the five-year period from 2011-2015,” he said.
At the 9th Party Congress held in March 2011, the Party expressed its wish that economic growth not fall below 8 percent over the five-year period.
A document released at the briefing showed that Gross Domestic Product (GDP) growth has been stable at 8.1 percent for the 2010-2011 financial year, and 8.3 percent for 2011-2012.
With the number expected to be about 8.1 percent this financial year, the average growth rate for the past three years should then be 8.2 percent.
To achieve continued growth, the government will need to invest 127 trillion kip over the five years, while 61.8 percent of the funds needed have been mobilised. In particular, the volume of private domestic and foreign investment has already reached over 70 percent of the target figure.
The Party also said inflation should be maintained at between -5 and +5 percent in this period. Figures released indicate it has improved over the past two-and-a half years, falling from 7.4 percent in 2010-2011 to 5.1 percent in 2011-2012, and falling again to 4.8 percent this year.
Mr Cheuang said the country's economic development is headed in the right direction with the service sector growing rapidly and employment levels increasing accordingly.
He also explained the change in the national economic structure. The percentage of people working as labourers in agriculture fell from 75.1 percent in 2010 to 71 percent in 2012. That figure is expected to fall to 70 percent this year.
Meanwhile, employment in the industrial sector rose from 5.5 percent to 7 percent, while in the service sector it increased from 19.5 to 20 percent.
“The change in our economic structure through the strong growth of industry and services has made us confident of GDP growth and we are sure it won't be lower than 8 percent,” Mr Cheuang said.
vientiane times
