AKP Phnom Penh, 27 November, 2025 —

The International Monetary Fund (IMF) has projected that the Lao economy will expand by 4.5% in 2026, supported by stronger exports, rising tourism, foreign direct investment, and an accommodative fiscal stance.

Despite the encouraging indicators, the IMF warned that several risks persist. Global and domestic pressures, including geopolitical tensions, volatility in commodity and financial markets, premature policy changes, and natural disasters, could weigh on the economy.

The organisation also pointed out that some banks remain vulnerable due to weak profitability and liquidity. Even so, it said greater regional integration, if effectively managed, could boost growth and help maintain external stability over the medium term.

Looking ahead, the IMF stressed that Laos must address deeper structural challenges to boost long-term growth. It highlighted the importance of better governance, stronger human development, and a more supportive business environment.

Recommended measures include enhancing transparency, improving coordination among government agencies, ensuring reliable data collection, and expanding public access to information. The IMF also urged the Government to advance regulatory reforms, reinforce anti-corruption efforts, and restructure state-owned enterprises.

AKP-VNA