In this article, our experienced analytic team would like to share their professional opinion regarding Laos’ economic condition and potential in 2022.
GDP growth last year was probably tepid, hit by multiple Covid-19 waves and the ensuing imposition of restrictions, with rising inflation also likely limiting activity by capping consumers’ purchasing power. At the start of the new year, momentum is likely to have remained restrained amid a surge in Covid-19 caseloads and persistently high price pressures, with the currency continuing to weaken. That said, the latest wave of infections has recently begun to abate, allowing the country to slightly loosen restrictions in January and February, boding more positively for activity ahead. In other news, despite much optimism following its opening in December, the China-Laos railway appears unlikely to boost activity early in the year, with local media reporting that Lao exports to China have been held up by tough Chinese border restrictions amid the ongoing Winter Olympics and the country’s zero-Covid policy.
Due to the detailed analysis, has been conducted by our analytic team, the economy should gain steam in 2022, with the China-Laos railway—once initial hitches are ironed out—boosting tourism and goods exports. Meanwhile, recovering global demand should further propel activity. However, a possible deterioration of the public health situation, the elevated external debt burden, rising inflation and currency depreciation pose key downside risks. Focus Economics Consensus Forecast panelists project GDP to expand 5.1% in 2022, which is down 0.3 percentage points from last month’s forecast, and 5.3% in 2023.
To summarize this article, our professional Thunder X Pay analytic department would like to inform all of our current partners as well as new potential Forex merchants and PSPs that we will always support you with the best solutions and advise you during the most critical economic turmoils in the economies of the countries where we provide the best payment QR Code solutions.
Published 03/03/2022
By Michael Saichuk
