Laos recorded 5 percent economic growth in the first half of 2026, while inflation slowed to 7.4 percent in June, according to the Bank of Laos and figures presented at the government’s first expanded cabinet meeting on 25 June.
State media reported that government revenue collection had reached 52 percent of its full-year 2026 target, while foreign exchange reserves remained sufficient to cover more than five months of imports.
The June inflation rate of 7.4 percent, reported separately by the Bank of Laos, marks a further decline and keeps inflation within the government’s target of below 8 percent as part of its broader macroeconomic stabilization efforts.
The latest figure continues a gradual easing trend in recent months. Inflation fell to 9 percent in May from 10.2 percent in April, according to the Lao Statistics Bureau, as lower fuel prices, reduced transport costs, and a more stable exchange rate helped ease price pressures.
Authorities attributed the improving outlook to stabilization measures, stronger revenue collection, and tighter macroeconomic management, which have helped curb inflation and support the value of the Lao kip.
The government said maintaining macroeconomic stability will remain a top priority in the second half of the year, alongside strengthening budget revenue, ensuring adequate fuel supplies, and supporting domestic production.
During the meeting, the cabinet also agreed in principle to a draft National Agenda on Rural Development and Poverty Reduction and a draft decree on sub-district administrative committees. The proposals aim to strengthen local governance, improve public administration, and support rural development, with relevant ministries instructed to finalize the drafts before approval.
Other priorities for the remainder of 2026 include reducing import dependence, expanding domestic production and exports, supporting small and medium-sized enterprises, attracting investment, and advancing digital infrastructure and transport projects.
The government also pledged stronger action against cybercrime, drug trafficking, and illegal mining. Prime Minister Sonexay Siphandone instructed ministries and local authorities to translate these priorities into concrete action plans with clear responsibilities and implementation deadlines.
