The South-East Asian nation of Laos is expected to maintain an economic growth rate of some 7 percent in 2016, the same rate that helped it boast one of the fastest growing economies in the East Asia and Pacific region last year according to figures released by the World Bank Tuesday.
The growth rate of the Lao economy in 2015 saw a half-percentage point drop from the 7.5 percent posted in 2014 in an environment accompanied by low oil prices and subdued inflation. Prospects for economic growth in the developing nation of some 6.5 million people remain strong on the back of opportunities for closer regional integration in transport, trade, production value chains and tourism, according to the World Bank analysis.
"With its growing economy, the (Lao) government can take steps to improve Laos'business environment and attract investment to create quality non-farm jobs and raise wages, while strengthening overall competitiveness,"World Bank country manager for Laos Sally Burningham said. On the risk side, the progress of economic transition in China and continuing slow growth in Thailand could place constraints on prospects for growth in Laos, according to the report.
The report also found that the poverty rate in Laos had declined to 23.2 percent nationally, though many households were still vulnerable of falling back into poverty.
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