This report presents technical recommendations for the Lao People's Democratic Republic's Long-Term Low-Emission Development Strategy (LT-LEDS) and its implementation. An LT-LEDS is a strategic document that outlines a country's plan under the Paris Agreement for low-emission development by...

Laos PDR is a landlocked country with a low GDP growth rate of 6% over the last few decades. GDP per capita increased to USD 2,550 in 2018 and then dropped to USD 1,880 in 2020, which has been affected by the pandemic of COVID-19 since late 2019. The services sector is the largest contributor to...

This policy note uses the most recent available data to outline the primary factors contributing to child stunting and malnutrition in Laos. The report draws on data from the baseline round of impact evaluation surveys conducted in 2020 as part of the Nutrition Convergence Projects. By applying...

In 2024, the Lao economy grew by 4.1 percent, driven primarily by strong performance in the services sector, followed by electricity generation, mining, agriculture, and some manufacturing. Services expanded by an estimated 5 percent. Foreign tourist arrivals rose by 21 percent alongside...

The Lao economy faces increased challenges from currency depreciation and high inflation. Economic recovery from COVID-19 has been gradual, undermined by macroeconomic instability and external factors. The combination of the need to service large external debts, high import prices, and limited...

The Lao People's Democratic Republic has a high execution rate for its overall health budget, ranging from 89 to 104 percent from 2015 to 2019. Aggregated execution rates are generally high across the main categories of spending - wage, non-wage recurrent and capital with only a couple of...

Supporting the Authority´s objectives on development of risk-based supervision of the banking sector, this technical assistance for the Bank of Lao P.D.R., conducted in Vientiane from June 10-14, 2024, provided advice on improvement of the aspects of risk-based supervision, including revising...

Two-thirds of people in the Lao People's Democratic Republic live in rural areas, yet agriculture contributes less than one-fifth of gross domestic product. As such, farm incomes remain low and many lack access to safe and nutritious food sufficient to meet dietary needs and risk falling into...

Food price inflation in Laos has surged into double digits since mid-2022, surpassing global and regional trends. High food prices impact the welfare of both consumers and agricultural producers. Holding all other factors constant, increasing food prices diminishes households' purchasing power....

The Country Opinion Survey in Laos People's Democratic Republic (PDR) assists the World Bank Group (WBG) in better understanding how stakeholders in Laos PDR perceive the WBG. It provides the WBG with systematic feedback from national and local governments, multilateral and bilateral agencies,...

Aspiring to become the "Battery of Southeast Asia," the Lao People's Democratic Republic (Lao PDR) has rapidly expanded its electricity generation capacity to export power to neighbouring countries. However, this expansion introduces several long-term risks, including over-capacity, rising...

The education sector in the Lao PDR (Laos) faces significant challenges. Access to education improved over of the past decade but substantial gaps remain, and previous progress is being undermined by the impacts of COVID-19 and ongoing economic difficulties. The quality of education was already...

The Lao PDR is facing unprecedented macroeconomic challenges, which jeopardize hard-won development gains. Over the past two decades, the country attracted considerable foreign investment and fostered regional integration, which contributed to a long period of high economic growth. Many human...

The Lao People's Democratic Republic (Laos) is facing economic challenges. The country is experiencing a growth slowdown with high levels of public debt. Growing current expenditure and debt service obligations amid sluggish tax revenue led to a widening fiscal deficit in the early 2010s, which...

A technical assistance mission from the IMF's Statistics Department visited Lao People's Democratic Republic during May 11-12, 2023, to support the authorities in continuing to improve the compilation and dissemination of public sector debt statistics (PSDS). The mission assisted the authorities...

Over the past few decades, special economic zones (SEZs) have become a widely used industrial policy tool to support structural transformation and economic development. Yet their impact on the economy remains inconclusive, especially in developing countries where the lack of data presents a...

Health taxes are excise taxes imposed on products that have a negative public health impact. Excise taxation is one of the most cost-effective policy measures to reduce consumption of these products, while also raising meaningful revenue. In the Lao PDR, the tax system under collects revenue,...

Economic growth remains below pre-COVID-19 levels, mainly owing to protracted macroeconomic instability. Economic growth is estimated at 3.7 percent for 2023, with positive contributions from the services sector (for example, tourism, transport, and logistics) and mining. Electricity generation,...

Growth gathered momentum in 2023 on the back of recovering external demand, but exchange rate depreciation continues and inflation remains persistently high. Labor and FX shortages are intensifying. Public debt is assessed to be unsustainable, despite a tight fiscal stance. FX reserves remain low

This paper employs an input-output modelling approach to quantify the impact of decreases in coffee exports between 2019 and 2020 resulting from the implementation of various COVID-19 policies in Lao PDR. The analysis was undertaken at two levels in investigating the effects of these policies on...

Dissemination of information can enhance smallholder farmers' agricultural outcomes and incomes in developing countries. However, the impact evaluation for new information can be inaccurate without considering pre-existing information that the indigenous people have used. This study explores...

This study investigates the link between agriculture and infrastructure development in order to provide policy options to maximize the opportunities for Lao agriculture sector in the context of Laos-China railway. Primary data collection from field surveys in provinces along the corridor of the...

This study applies a stochastic frontier gravity model to examine Laos' export potential as well as factors hindering its export growth. This article uses a panel data of thirty-four importing countries from 2001 to 2011. Three main export growth factors are analysed in the model: (i) core...

Dissemination of information can enhance smallholder farmers’ agricultural outcomes and incomes in developing countries. However, the impact evaluation for new information can be inaccurate without considering pre-existing information that the indigenous people have used. This study explores...

"China, Laos and Vietnam are three of a handful of late socialist countries where capitalist economics rubs up against party-state politics. In these countries, sweeping processes of change open up new vistas of opportunity and imaginaries of the future alongside much uncertainty and anxiety,...