The Asian Development Bank (ADB) 's Asian Development Outlook 2014 has projected a 7.3 percent GDP growth for Laos in 2014 but warns of the country's susceptibility to economic shocks due to macroeconomic imbalances.
The projected 7.3 percent growth in 2014 falls slightly short of last year's 7.6 percent.
"The Lao PDR economy remains one of the top performers in the region in terms of economic growth," said ADB Country Director Sandra Nicoll on Tuesday.
"It is clear, however, that the economy has become more vulnerable to internal and external shocks, and the challenge for the government is to make the economy more resilient by addressing the macroeconomic imbalances that exist today."
The ADB's Lao growth prospects are affected by the fiscal challenges facing the government and a small slowdown in mining and construction.
ADB Deputy Country Director Barend Frielink told Xinhua that the most urgent issue facing the Lao government was its fiscal constraints.
"The economy may not be resilient enough to withstand shocks under the current circumstances so the priority should be to address the fiscal imbalances," he said.
The ADB report attributes Laos' 7.6 percent growth last year to the country's expansionary fiscal and monetary policies. Services expanded by 9 percent supported by robust consumer spending. A 12 percent increase in tourist arrivals benefited hotels, restaurants and transportation.
More at http://www.shanghaidaily.com/article/article_xinhua.aspx?id=209929
No comments:
Post a Comment