Lao People's Democratic Republic: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao People’s Democratic Republic
Lao People’s Democratic Republic: 2025 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Lao People’s Democratic Republic
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Volume/Issue:
Volume 2026
Issue 050
Publication date: February 2026
ISBN: 9798229041522
$20.00
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Exports and Imports , Inflation , Public Finance , Business and Economics - Statistics , Debt sustainability analysis , Inflation
Summary
Supportive external conditions and domestic policy tightening helped stabilize economic imbalances and the exchange rate (ER), though policies have eased recently. Stronger-than-expected activity in key partner countries boosted GDP growth in 2024−25:Q3, and, along with Chinese debt service deferrals, resilient FDI and favorable terms of trade, strengthened external balances and reserve accumulation. Tight monetary and fiscal policies in 2025, and monetary policy framework reforms, eased ER pressures and allowed rapid disinflation. However, monetary policy was eased in 2025:Q4 and the fiscal stance is projected to ease in 2026 relative to the stronger-than-expected 2025 primary surplus.
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