Private sector development essential for continued Lao economic growth

• Mar 01, 2019

Laos is one of the fastest growing economies in Southeast Asia (SEA). On average the country’s economy as measured by GDP has grown by 7.5 per cent per year and trade by 17 per cent per year since 2000, reflecting the importance of trade as a key driver of its growth. However, while Laos is on its way to graduating from ‘Least Developed Country’ (LDC) status, the nation still needs to overcome ongoing macroeconomic and structural challenges.

In March 2018 the United Nations Economic and Social Council (ECOSOC) announced that Laos was eligible to graduate from LDC status.

Gross national income (GNI) per capita reached $1,996 in 2017, well above the graduation threshold of $1,230, and its human assets index had reached 72.8 compared to the threshold of 66.

Its economic vulnerability index reached 33.7, slightly higher than the threshold of 32 or less.

While Laos has passed the thresholds for per capita income and the human assets index, the economic vulnerability index, which measures the country’s resilience to economic shocks and instability, is arguably still to be met.

Source: https://aecnewstoday.com/2019/private-sector-development-essential-for-continued-lao-economic-growth/