Laos’ economy expanded 5 percent in the first half of 2026, helped by a strong tourism season and growth in services, but slowed in the second quarter as the government works to meet its 6 percent target for the year.
Growth reached 5.5 percent in the first quarter before easing to 4.6 percent in the second, according to figures released by the Ministry of Finance at its mid-year review meeting on 24 August.
Tourism has been one of the brighter spots. Nearly 2.6 million international visitors arrived in Laos during the first six months of the year, a 9.9 percent increase from the same period in 2025. The government is hoping to attract between 5 million and 6 million visitors by the end of the year.
The services sector is expected to grow 7.1 percent this year, making it the fastest-growing part of the economy, followed by industry at 5.7 percent and agriculture at 4.1 percent.
The government collected LAK 44,956 billion (USD 2.01 billion) in revenue during the first half, up 19 percent from the same period last year and putting it more than halfway toward its annual target.
For Laos, however, the 6 percent growth goal is about more than this year’s economic performance. The country is preparing to graduate from the United Nations’ Least Developed Country category at the end of 2026, while the government has set a broader goal of maintaining at least 6 percent annual growth through 2030.
Officials project that GDP per capita will reach USD 3,104 and gross national income per capita USD 2,914 by 2030.
The first-half figures put Laos behind several of its regional neighbors.
Vietnam’s economy grew 8.2 percent during the same period, while Singapore, Malaysia and Indonesia recorded growth of 6.1 percent, 5.7 percent and 5.5 percent, respectively. Thailand and the Philippines grew more slowly, at 2.4 percent and 2.6 percent.
The Finance Ministry said the economy generated LAK 199,987 billion (USD 8.92 billion) in the first six months, equivalent to 48 percent of the government’s full-year output target of LAK 417,523 billion (USD 18.62 billion).
