KPL
The Lao economy grew by 5 percent in the first half of 2026, supported by continued expansion in the services, industry, tourism, and manufacturing sectors, Prime Minister Sonexay Siphandone told the ongoing Extraordinary Session of the National Assembly on July 6.
According to the Government's report, economic growth accelerated from 4.8 percent during the same period in 2025. GDP expanded by 5.5 percent in the first quarter before easing to 4.6 percent in the second quarter. At current prices, GDP reached an estimated 199.987 trillion kip, equivalent to 48 percent of the annual target of 417.523 trillion kip.
The services sector remained the largest contributor to growth, expanding by 5.3 percent and accounting for 37.2 percent of GDP. Hotels, restaurants, tourism-related services, transport, and wholesale and retail trade recorded strong performance as business activity and visitor arrivals continued to recover.
The industrial sector grew by 5.1 percent, contributing 35 percent of GDP. Growth was driven by construction and manufacturing, including wood processing, paper production, metal processing, and machinery manufacturing.
The agricultural sector expanded by 4.3 percent, representing 17.4 percent of GDP. Dry-season rice cultivation reached 98,012 hectares, producing 441,000 tonnes, an increase of 14.5 percent from a year earlier. Wet-season rice planting is progressing as planned, with annual production projected to reach 3.31 million tonnes.
Manufacturing and handicrafts generated output valued at 11.691 trillion kip, achieving 50 percent of the annual target and rising 16.8 percent year-on-year. Beverage production, paper products, chemicals, rubber, and plastics were among the fastest-growing industries.
The Government said the economy remains on a steady recovery path, with continued investment in agriculture, manufacturing, tourism, and infrastructure expected to support growth through the remainder of 2026. GDP per capita and Gross National Income per capita will be announced at the end of the year.
KPL
