The Lao government has vowed to reduce the total public and publicly guaranteed debt stock to 64.5 per cent of gross domestic product (GDP) by the end of 2023.
The Lao Ministry of Industry and Commerce hopes to boost bilateral trade and investment with India in the years ahead by taking advantage of untapped potential and abundant resources in different fields.
The Lao economy is projected to steadily recover in the medium-term, but growth will remain below pre-pandemic levels at 4.5 per cent in 2022, according to a new World Bank report.
Laos registered a record low trade deficit of $24 million last month, breaking previous records of the year, with the two-way trade value slightly rising to $880 million.
The Lao economy is on course for moderately improved growth in 2021, despite an outbreak of Covid-19 denting the promising economic recovery made earlier in the year, according to the World Bank.
Revenue earned from potential mining operations, revamped state enterprises and from other as yet untapped sources will be used to pay debts amounting to almost $14 billion, the Lao government has told the National Assembly (NA).
The increasing inflation rate and the weak kip are partly to blame for the slow growth of the Lao economy.
Laos saw a record $932 million in the value of imports and exports last month, but recorded a trade deficit of $62 million, as the value of imports at $497 million was higher than the value of exports at $435 million.
Laos enjoyed a trade surplus in controlled goods through Vietnam in the first six months of 2021 despite the transport difficulties caused by Covid-19 prevention measures.
The year-on-year inflation rate continued to rise in Laos last month amid economic distress triggered by the Covid-19 pandemic.