(KPL) At the 12th National Congress of the Lao People’s Revolutionary Party, the Minister of Finance, Mr. Santiphab Phomvihane, presented a report on building consistent and sustainable macroeconomic growth, highlighting progress in implementing the Politburo’s Resolution No. 04 on developing an Independent and Self-Reliant Economy.

The report noted that the implementation of Party leadership and coordinated policy measures has contributed to a gradual recovery and stabilization of the national economy, improving overall macroeconomic resilience and financial discipline.

During the 2021–2025 period, the economy maintained an average growth rate of 4.2 percent per year. Inflation was effectively controlled and reduced to single-digit levels, reaching 4.8 percent by November 2025. National budget revenues expanded significantly, increasing from 15.1 percent of GDP in 2021 to approximately 20 percent in 2025, consistently exceeding planned targets.

Public debt management also recorded progress, with the public debt-to-GDP ratio declining from 112 percent in 2022 to about 88 percent in 2025. In addition, foreign exchange rates showed greater stability compared to previous years, contributing to improved investor confidence and financial predictability.

To ensure sustainable growth and long-term macroeconomic stability, the Minister of Finance outlined five strategic priorities. These include transforming the growth model by improving labor quality and applying digital technologies across production and services; attracting high-quality investment while accelerating reforms of State-Owned Enterprises to enhance efficiency and profitability; and strengthening fiscal discipline through expansion of the tax base, improved Value Added Tax implementation, and elimination of unauthorized tax exemptions.

Further priorities include accelerating digitalization in public financial management to enhance transparency, efficiency, and inter-agency data sharing, as well as strengthening monetary and foreign exchange management to stabilize currency markets and expand access to credit for domestic production sectors.

The report emphasized that strengthening macroeconomic stability requires coordinated policy implementation, strict enforcement of laws and regulations, and continued modernization to ensure sustainable, independent, and resilient economic development for the country.

KPL