KPL
Laos’ economy is projected to grow by 4.8% by the end of 2025, reflecting steady progress under the government’s five-year socio-economic development plan for 2021–2025.
Prime Minister Sonexay Siphandone
Over the past five years, the government has focused on implementing 12 key economic priorities, particularly addressing economic and financial difficulties and introducing measures to stimulate growth. According to Prime Minister Sonexay Siphandone, who presented the government’s report at the 10th Ordinary Session of the 9th National Assembly on 10 November 2025, the economy has expanded at an average annual rate of 4.24%, in line with the five-year plan.
During the period, the agricultural sector grew at an average of 2.9%, accounting for 19.4% of GDP—exceeding the plan’s projection of 2.5% growth and 15.3% of GDP. The industrial sector expanded by an average of 4.7%, representing 32.5% of GDP, also surpassing the planned 4.1% growth and 32.3% share. Meanwhile, the service sector grew by 4.5%, accounting for 36.6% of GDP, which was below the target of 6% growth and 41.3% of GDP. Net product taxes rose at an average of 3.8%, contributing 11.5% to GDP, slightly under the projected 5.8% growth and 11.7% share.
Key drivers of growth included food production for domestic use and export, electricity and mining production, processing industries, transportation, and tourism. However, the service sector and tax revenues fell short of targets due to a combination of internal and external factors.
Unfavourable weather conditions, natural disasters, and the COVID-19 pandemic significantly disrupted business operations and social stability. Externally, regional and global economic volatility, slower-than-expected recoveries in neighbouring economies, labour policy adjustments by nearby countries, and ongoing domestic economic and financial difficulties have all placed pressure on Laos’ monetary stability.
These challenges have contributed to inflation, exchange rate fluctuations, and higher prices for essential and imported goods, affecting the cost of living and prompting many Lao workers to seek employment abroad. Despite these constraints, the government remains committed to maintaining economic stability and achieving the 4.8% growth target by the end of 2025.
KPL
