Lao PDR’s economy is expected to recover gradually from the pandemic crisis, expanding by 3.5 percent in 2022. Challenges in external financing, public debt sustainability, and domestic financial stability continue to weigh on economic prospects in the short to medium term. Strengthening fiscal consolidation and financial supervision, and expediting structural reforms, are key to macroeconomic stability while targeted policy support for economic recovery should continue.
These conclusions are highlighted in the 2022 Annual Consultation Report on Lao PDR published by the ASEAN+3 Macroeconomic Research Office (AMRO). The report was produced based on AMRO’s Virtual 2022 Annual Consultation Visit to Lao PDR, and data and information available up to March 15, 2022.