This would surpass the target of at least 4 percent set in the national agenda, said government representatives in the National Assembly.
This estimated figure is higher than the predictions made by the World Bank and the Asian Development Bank which had both lowered the economic growth forecast for the country to 2.5 percent for this year.
Deputy Prime Minister Dr. Sonexay Siphandone recently spoke about the progress made in the last 15 months stating that the revenue for 2022 is all set to reach LAK 32,447 billion, and at 15.28 percent of gross domestic product (GDP), it would exceed the target figure of 15 percent.
At 0.99 percent, the budget deficit would also be below the set figure of 2 percent and the government would ensure that the country doesn’t slide into default. According to him, Laos also has enough foreign reserves to cover imports for the next three months.
The Deputy DM acknowledged that the country might not be able to hit some of its targets due to the increasing inflation and unstable global economic conditions. The primary objective of the national agenda was set to increase production capacities within the country so that it could reduce its dependency on imports while also focusing on exporting more goods.
“The business environment has improved, with barriers removed to promote production and export,” said Dr. Sonexay informing that Laos is already in talks with neighboring countries like China, Thailand, and Vietnam to explore more export options for high-quality Lao goods across categories.
Additionally, there has also been an effort to modernize revenue collection and remove loopholes that lead to the loss of money owed to the state, which could further increase its income. Relevant authorities would also do their part to ensure better management of state expenditure and investment projects to increase efficiency, Dr. Sonexay said.