Laos is showing signs of economic improvement in 2025, with a trade surplus, and declining inflation, Prime Minister Sonexay Siphondone shared during the government’s cabinet meeting held on 31 May.
In April, the country recorded a total trade volume of over USD 1.57 billion (excluding electricity), with exports at USD 813 million and imports at USD 757 million, resulting in a trade surplus of over USD 14 million. Despite a drop in both exports and imports compared to March, the surplus reflects growing economic stability.
Top exports included electrical appliances, salt, and gold, while key imports were chemicals, diesel, and vehicles. China remained Laos’s largest trading partner for both exports (USD 279 million) and imports (USD 298 million).
Meanwhile, improved revenue collection supported the government’s fiscal position. By May, earnings had reached 93 percent of the half-year target, which is LAK 31,773 billion (around USD 1.4 million), while spending reached only 56.26 percent of the planned budget.
Inflation Eases, Foreign Reserves Improve
Inflation dropped to 8.3 percent in May from 11.1 percent in April, marking the first single-digit rate since May 2022. The decline is part of a steady downward trend over the past 11 months, easing pressure on households facing rising costs.
Exports excluding electricity rose 16.2 percent from the previous month, strengthening foreign currency reserves, now enough to cover at least five months of imports. Government officials also confirmed that debt repayments are proceeding as planned.
Domestic production is also on the rise, with the country becoming more self-sufficient in meeting food demands.
Building on signs of economic improvement, Laos recorded a USD 160 million trade surplus in March, with total trade reaching USD 1.73 billion, driven by strong exports of electrical equipment, cassava, and gold. Exports rose 2 percent from February to USD 945 million, while imports surged to USD 785 million amid rising domestic demand.
Thailand and China remained top trade partners. The data reflects steady export growth and economic momentum, though electricity trade figures remain pending.
In the recent meeting, the cabinet also reviewed infrastructure developments, including the nearly completed Mekong River bridge connecting Xayaboury and Bokeo provinces, and the Fifth Lao-Thai Friendship Bridge set to open by the end of the year.
Looking ahead, the government plans to strengthen foreign reserves, improve market monitoring, prioritize key imports, and support job creation. Other goals include boosting vocational training, regulating mineral production, and repairing disaster-hit infrastructure