Lao economy will see 8.3 percent growth this year
The World Bank has raised its GDP growth forecast for Laos this year, expressing optimism that agricultural output will rebound.
The bank announced the revision of its earlier projection of 7.5 percent growth to 8.3 percent during a video conference yesterday from Tokyo, Japan, when unveiling the East Asia Economic Update mid-year review.
According to a World Bank Senior Economist in Laos, Ms Genevieve Boyreau, the main driver of Lao GDP growth in 2012 will be the mining sector, which is expected to gain a major boost from the expansion of mining operations and the rising price of gold and copper on the world market.
Construction will also play an im portant role in driving economic growth. Laos is building a large convention centre and 50 luxury villas and expanding Vientiane's Wattay International Airport in preparation for the Asia-Europe Meeting Summit it will host in November.
The services sector is also expected to see remarkable growth this year. The sector will benefit from higher wholesale and trade volumes, and growth in tourism, transport and telecommunications. The manufacturing sector will also benefit from the growing demand for cement, construction materials, food, and beverages.
However, while the outlook for short term growth is positive, growth in the medium term remains subject to uncertainty in external markets as a result of price volatility, the Euro area debt crisis, and a slowdown in China's economic growth.
