Vientiane: The Lao Government has set an ambitious target to achieve economic growth of over 5% during the 2026-2030 period. This target underscores the government's confidence in the ongoing recovery of its economy.
According to Lao News Agency, the Lao Ministry of Planning and Investment reported that the country's Gross Domestic Product (GDP) grew by 4.6% in 2024, surpassing the National Assembly's target of 4.5%. Under the new economic plan, the agricultural sector is projected to grow by an average of 4.4%, contributing 21.30% to GDP. Meanwhile, the industrial sector is anticipated to expand by an average of 5.1%, representing 31.5% of GDP, and the service sector is expected to grow by 5.6%, accounting for 36.8% of GDP. The customs and taxation sector is set to grow by an average of 3.6%, making up 10.4% of GDP. By 2030, GDP per capita in Laos is expected to reach 2,983 USD.
Additionally, the Lao Government has aimed to collect 530.9 trillion LAK (24.6 billion USD) in budget revenue, which equates to 20.5% of GDP. The government also plans to maintain overall spending at 19.6% of GDP over the five-year period, with a focus on achieving a single-digit inflation rate and ensuring 80% of the population has access to financial services.
In early 2025, the Lao economy showed signs of recovery despite facing challenges and fluctuations in the global economy. During the first quarter of the year, the country recorded a growth rate of 4.5%. The latest government report in May highlighted a significant decrease in the inflation rate to 8.3%, marking the first instance of single-digit inflation in Laos since May 2022.