The initial estimates made by Lao National Statistics Bureau suggest that gross domestic product (GDP) for the 2015-2016 fiscal year will reach 6.9-7 percent, lower than the planned 7.5 percent, Lao state-run news agency KPL reported Wednesday.Deputy Minister of Lao Planning and Investment Khamlien Pholsena attributed the shortfall in GDP growth partly to the turmoil in the world economy. World economic growth is expected to slow to around 2.9 percent this year.
Lao 2015-2016 fiscal year ends at the end of September, 2016.
The GDP was expected to reach over 108 trillion kip (some 13.3 billion US dollars) with per capita GDP reaching 2,026 US dollars. Growth of the GDP in the agricultural sector is expected to rise by 3.0 percent against the same period last year and represent 23.3 percent of the national GDP. The service industry is expected to grow by 8.5 percent and account for 39.8 percent of the GDP. The industry sector is expected to increase by 9.0 percent and shares 28.8 percent of GDP.
“To achieve such targets, it is necessary to encourage and ensure macroeconomic stability, especially by making sure that revenue collection targets are met, unnecessary expenses are limited, and national economic development targets are achieved, especially those regarding the production of monsoon rice, hydropower, and commercial production,”said the deputy minister.
He added that helping the processing industry and service sector meet or exceed their planned targets is also necessary to ensure that GDP can grow as planned over the months to come.
The GDP growth in Laos is expected to grow by 6.8 percent in 2016 and 7 percent in 2017, according to the Asian Development Outlook 2016 released in March 2016.