Laos’ economy grew 4.8 percent in the first nine months of 2026, Prime Minister Saleumxay Kommasith told lawmakers on 5 October, crediting manufacturing, private investment, electricity, trade and tourism-related services.
Saleumxay delivered the figure on the opening day of the second ordinary session of the 10th National Assembly, which runs until 21 October. Lawmakers appointed him prime minister the same day.
The government expects full-year growth of 5.1 percent, which would still miss its 5.5 percent target. Meanwhile the World Bank forecasts 4.1 percent growth for 2026, and the Asian Development Bank forecasts 4 percent.
Money flowing into the country helped drive the growth. Saleumxay said investment inflows exceeded the government’s target, and officials approved 45 new private projects worth more than LAK 193 billion (USD 8.6 million), with more than half of them in electricity and construction.
Mining and electricity also performed well.
To keep more value in the country, the government will now require new mining projects to build processing plants, which it expects to reduce raw mineral exports gradually, according to Saleumxay.
Government Income
In the first nine months of the year, the government collected LAK 67.5 billion (USD 3 million) in revenue, up 24.3 percent from the same period last year.
The government expects to collect LAK 91.8 billion (USD 4.1 million) by the end of the year, above its target.
Saleumxay attributed the increase to stronger activity in mining, transport, and warehousing, higher corporate income tax collections, and improved tax collection systems.
Trade also helped, with Laos recording a USD 1.356 billion trade surplus in the first nine months.
Prices, however, remain a challenge. Inflation averaged 7.9 percent over the period and stood at 7.8 percent in September.
The government estimates full-year inflation well above its 5 percent target.
Tourism also fell short of expectations. Laos welcomed about 3.28 million international visitors in the first nine months of 2026, with the government expecting about 3.66 million by year-end. That is well below its target of 5 to 6 million visitors a year through 2030.
To protect the sector’s reputation, authorities plan to crack down on “zero-dollar tours” and punish vendors who overcharge or sell poor-quality goods.
Despite the positive figures, the government admitted that serious problems remain.
High prices continue to squeeze households, and officials acknowledged tax leakage, weak infrastructure, and illegal mining and logging.
