(KPL) The Lao government anticipates that the national gross domestic product (GDP) will grow by 4.6% in 2024, surpassing the National Assembly’s approved target of 4.5%.

This growth is expected to be driven by the services, transportation, and wholesale and retail sectors.

Prime Minister Sonexay Siphandone presented the latest economic growth forecast at the 8th Ordinary Session of the 9th Legislature of the National Assembly, which opened today, Nov 18.

In his report, the Prime Minister highlighted the implementation of the socio-economic development plan, the state budget plan, and the 2024 monetary plan, emphasizing that the targets in these plans align with the national agenda on addressing economic and financial challenges.

Despite significant challenges over the past year, including inflation, exchange rate fluctuations, rising commodity prices, foreign debt burdens, and severe floods in Luang Namtha and Huaphan provinces, the government has managed to sustain economic growth. Under the strong leadership of the Party Central Committee, with oversight from the National Assembly and the collective efforts of all sectors of society, the government and local authorities have focused on addressing national challenges.

This approach has helped avoid a debt crisis and allowed for continued economic progress. Revenue collection has exceeded targets for the fourth consecutive year, while political stability and a peaceful society have been maintained.

The government has concentrated on implementing the targets and measures outlined in the National Assembly Resolution and the 2024 government priorities, particularly addressing economic and financial issues.

Overall, the economic sector has achieved 10 out of 11 key indicators. Annual paddy rice production is expected to reach 3.64 million tons, or 94% of the target (3.86 million tons), with the shortfall attributed to damage from natural disasters during the rainy season.

Key contributors to economic growth include the services, transportation, and wholesale and retail sectors, alongside the hosting of ASEAN Summits and the launch of Visit Laos Year, which have boosted domestic and international tourism. Laos welcomed over 5 million visitors so far this year, generating more than 1 billion US dollars in revenue, with domestic tourism surpassing the annual target by 127%.

Additionally, the agriculture, processing industry, and construction sectors have experienced a notable growth. Food production reached 3.18 trillion kip, or 74.66% of the annual target, while mineral production exceeded expectations, reaching more than 34 trillion kip, or 127.52% of the plan.

In terms of investment, 69.11 trillion kip was implemented over the past nine months, exceeding the target by 22%. Of this amount, state budget investments totaled 4.01 trillion kip (80% of the plan), while investments from domestic and foreign private sectors reached 2.61 billion US dollars, equivalent to 56.13 trillion kip, or 173% of the target.

KPL