Vientiane:The country is grappling with inflationary pressures as average inflation reached 7.9% in the first nine months of 2026, raising concerns about meeting the year’s target of 5%. Prime Minister Saleumxay Kommasith addressed this issue during the 2nd Ordinary Session of the 10th National Assembly on October 5.
According to Lao News Agency, the Prime Minister identified rising fuel prices and increased costs for construction materials as the primary drivers of the higher inflation rate.
Despite these economic challenges, Laos achieved a trade surplus of US$1.356 billion in the same period, with the economy growing by 4.8% year-on-year. However, domestic revenue collection remains a concern, as government income is still largely reliant on natural resources instead of more sustainable sources like land-related revenue, value-added tax, and concession fees.
The Prime Minister also noted issues with unclear responsibilities between central and local authorities regarding revenue collection, particularly for large-scale projects. Additionally, revenue leakage and tax evasion persist, especially in the import and trade of vehicles and other goods.
