Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity
The Lao economy is estimated to have expanded by around 7 percent in 2015, a slight moderation from 7.5 percent in 2014. Similar to the last decade, the resource sectors (hydropower and extractives) continued to make an important contribution to gr...
| Main Authors: | , |
|---|---|
| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2016
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2016/05/26379887/lao-economic-monitor-challenges-promoting-more-inclusive-growth-shared-prosperity-thematic-section-drivers-poverty-reduction-lao-pdr http://hdl.handle.net/10986/24372 |
| id |
okr-10986-24372 |
|---|---|
| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
LIVING STANDARDS TARIFFS TERRORISM DEFICIT DEPOSIT GOVERNMENT EXPENDITURES OIL PRICE NPL EQUIPMENT ACCOUNTING DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT STOCK INTEREST PUBLIC INVESTMENTS DEBT STOCK BANKING SECTOR ASSET EXCHANGE GOVERNMENT REVENUES BALANCE OF PAYMENTS DISCOUNT RATE ECONOMIC DEVELOPMENTS RESERVE REQUIREMENTS DEBT MANAGEMENT REPAYMENTS REVENUES PORTFOLIO BONDS LOAN DISCOUNT BORROWERS TRADE SECTOR TAX PUBLIC BORROWING NON-PERFORMING LOANS RESERVE CREDITORS INFLATION DEBT BURDEN CREDITOR FOREIGN INVESTMENTS SAFETY NETS BANK LENDING BUDGET MATURITY MACROECONOMIC STABILITY TRADE BALANCE OIL PRICES INVESTMENT SPENDING CURRENCY COMMERCIAL BORROWING ENFORCEMENT OF CONTRACTS COMMERCIAL BANK PORTFOLIOS INCOME GROWTH CONTRACTS INFLATIONARY PRESSURES FINANCES FOREIGN CURRENCIES BOND ISSUANCE TRADING OPTIONS DEBT OUTSTANDING INTEREST RATES MONETARY FUND MARKETS DEBT CAPITAL MARKET INFLATIONARY PRESSURE HOUSEHOLD INCOME INFLATION RATE SETTLEMENT CREDITOR RIGHTS LOANS DIRECT INVESTMENT RESERVES DEBT SERVICE GROSS DOMESTIC PRODUCT MONETARY AUTHORITIES FINANCE FOREIGN CURRENCY PUBLIC INVESTMENT TAXES BANKING SECTOR FISCAL DEFICIT EXPENDITURE DEBT FINANCING INTERNATIONAL STANDARDS CREDIT EXPANSION EQUITY INVESTORS COMMERCIAL BANK LENDING ECONOMIC RISKS HUMAN CAPITAL INTEREST PAYMENTS GOOD GOVERNMENT BUDGET FUTURE FOREIGN DIRECT INVESTMENT RETURNS FARMING HOUSEHOLDS INVESTMENT PROJECTS PRICE CHANGES DISBURSEMENTS EXPENDITURES CREDIT INFORMATION AMORTIZATION ISSUANCE CURRENT ACCOUNT DEFICIT POTENTIAL INVESTMENT LOAN PORTFOLIO MARKET LOCAL CURRENCY NON-PERFORMING LOAN PUBLIC DEBT BALANCE OF PAYMENT SOLVENCY INSURANCE CURRENCIES ECONOMIC DEVELOPMENT INVESTOR GOODS BANK BRANCH LENDING INTEREST RATES INVESTMENT BOND COMMERCIAL BANKS SHARE LOAN PORTFOLIOS INVESTMENT CLIMATE PUBLIC FINANCES POVERTY LOAN SIZE POLITICAL STABILITY CAPITAL INFLOWS BANK SUPERVISION REVENUE EXTERNAL DEBT PROFIT INVESTMENTS LENDING CONSUMER PRICE INDEX CREDIT GROWTH BANKING SECTOR ASSETS MATURITIES EXCHANGE RATE FISCAL DISCIPLINE DEBT SERVICING PUBLIC DEBT STOCK PUBLIC SPENDING COMMODITY PRICES EQUITY STAKES ARREARS CAPITAL ACCOUNT EXTERNAL BORROWING |
| spellingShingle |
LIVING STANDARDS TARIFFS TERRORISM DEFICIT DEPOSIT GOVERNMENT EXPENDITURES OIL PRICE NPL EQUIPMENT ACCOUNTING DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT STOCK INTEREST PUBLIC INVESTMENTS DEBT STOCK BANKING SECTOR ASSET EXCHANGE GOVERNMENT REVENUES BALANCE OF PAYMENTS DISCOUNT RATE ECONOMIC DEVELOPMENTS RESERVE REQUIREMENTS DEBT MANAGEMENT REPAYMENTS REVENUES PORTFOLIO BONDS LOAN DISCOUNT BORROWERS TRADE SECTOR TAX PUBLIC BORROWING NON-PERFORMING LOANS RESERVE CREDITORS INFLATION DEBT BURDEN CREDITOR FOREIGN INVESTMENTS SAFETY NETS BANK LENDING BUDGET MATURITY MACROECONOMIC STABILITY TRADE BALANCE OIL PRICES INVESTMENT SPENDING CURRENCY COMMERCIAL BORROWING ENFORCEMENT OF CONTRACTS COMMERCIAL BANK PORTFOLIOS INCOME GROWTH CONTRACTS INFLATIONARY PRESSURES FINANCES FOREIGN CURRENCIES BOND ISSUANCE TRADING OPTIONS DEBT OUTSTANDING INTEREST RATES MONETARY FUND MARKETS DEBT CAPITAL MARKET INFLATIONARY PRESSURE HOUSEHOLD INCOME INFLATION RATE SETTLEMENT CREDITOR RIGHTS LOANS DIRECT INVESTMENT RESERVES DEBT SERVICE GROSS DOMESTIC PRODUCT MONETARY AUTHORITIES FINANCE FOREIGN CURRENCY PUBLIC INVESTMENT TAXES BANKING SECTOR FISCAL DEFICIT EXPENDITURE DEBT FINANCING INTERNATIONAL STANDARDS CREDIT EXPANSION EQUITY INVESTORS COMMERCIAL BANK LENDING ECONOMIC RISKS HUMAN CAPITAL INTEREST PAYMENTS GOOD GOVERNMENT BUDGET FUTURE FOREIGN DIRECT INVESTMENT RETURNS FARMING HOUSEHOLDS INVESTMENT PROJECTS PRICE CHANGES DISBURSEMENTS EXPENDITURES CREDIT INFORMATION AMORTIZATION ISSUANCE CURRENT ACCOUNT DEFICIT POTENTIAL INVESTMENT LOAN PORTFOLIO MARKET LOCAL CURRENCY NON-PERFORMING LOAN PUBLIC DEBT BALANCE OF PAYMENT SOLVENCY INSURANCE CURRENCIES ECONOMIC DEVELOPMENT INVESTOR GOODS BANK BRANCH LENDING INTEREST RATES INVESTMENT BOND COMMERCIAL BANKS SHARE LOAN PORTFOLIOS INVESTMENT CLIMATE PUBLIC FINANCES POVERTY LOAN SIZE POLITICAL STABILITY CAPITAL INFLOWS BANK SUPERVISION REVENUE EXTERNAL DEBT PROFIT INVESTMENTS LENDING CONSUMER PRICE INDEX CREDIT GROWTH BANKING SECTOR ASSETS MATURITIES EXCHANGE RATE FISCAL DISCIPLINE DEBT SERVICING PUBLIC DEBT STOCK PUBLIC SPENDING COMMODITY PRICES EQUITY STAKES ARREARS CAPITAL ACCOUNT EXTERNAL BORROWING Najdov, Evgenij Phimmahasay, Keomanivone Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| geographic_facet |
East Asia and Pacific Lao People's Democratic Republic |
| description |
The Lao economy is estimated to have
expanded by around 7 percent in 2015, a slight moderation
from 7.5 percent in 2014. Similar to the last decade, the
resource sectors (hydropower and extractives) continued to
make an important contribution to growth. Power generation
got a boost from the commissioning of the first two blocks
of the 1,878 MW Hongsa lignite power plant and an additional
250-300 MW of installed capacity in the hydro sector.
Furthermore, despite lower global commodity prices, mining
output still increased as metal prices remained above the
mines’ cost recovery levels. The revised State Budget Law,
approved in December 2015, enhances the authority of the
National Assembly in budget oversight and Ministry of
Finance in budget management. In addition, with regards to
anti-money laundering and counter-terrorism financing, the
Government strengthened key regulations (including on
forfeiture of assets, border declaration, penalties for
non-compliant entities) recommended by the Financial Action
Task Force (FATF), which helped remove Lao PDR from the
FATF’s list of ‘jurisdictions not making sufficient
progress’. The outlook will depend on the progress in the
implementation of the recommendations and agreed measures.
GDP is expected to expand at around 7 percent per annum as a
healthy pipeline in the power sector keeps investments
strong and increases electricity production and exports by
almost 40 percent. Stabilization of growth rates in China
and some acceleration in Vietnam and Thailand should
increase demand for Lao PDR exports. On the other hand, some
gradual fiscal consolidation is expected, largely through
broadening the revenue base and efforts to improve
efficiency in spending and should help strengthen the
outlook for public debt sustainability and lower the risk of
debt distress from its current level of moderate, but
borderline to high. |
| format |
Report |
| author |
Najdov, Evgenij Phimmahasay, Keomanivone |
| author_facet |
Najdov, Evgenij Phimmahasay, Keomanivone |
| author_sort |
Najdov, Evgenij |
| title |
Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| title_short |
Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| title_full |
Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| title_fullStr |
Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| title_full_unstemmed |
Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity |
| title_sort |
lao economic monitor, may 2016 : challenges in promoting more inclusive growth and shared prosperity |
| publisher |
World Bank, Washington, DC |
| publishDate |
2016 |
| url |
http://documents.worldbank.org/curated/en/2016/05/26379887/lao-economic-monitor-challenges-promoting-more-inclusive-growth-shared-prosperity-thematic-section-drivers-poverty-reduction-lao-pdr http://hdl.handle.net/10986/24372 |
| _version_ |
1764456747318116352 |
| spelling |
okr-10986-243722021-06-14T10:17:48Z Lao Economic Monitor, May 2016 : Challenges in Promoting More Inclusive Growth and Shared Prosperity Najdov, Evgenij Phimmahasay, Keomanivone LIVING STANDARDS TARIFFS TERRORISM DEFICIT DEPOSIT GOVERNMENT EXPENDITURES OIL PRICE NPL EQUIPMENT ACCOUNTING DEPOSITS BROAD MONEY FINANCIAL MANAGEMENT STOCK INTEREST PUBLIC INVESTMENTS DEBT STOCK BANKING SECTOR ASSET EXCHANGE GOVERNMENT REVENUES BALANCE OF PAYMENTS DISCOUNT RATE ECONOMIC DEVELOPMENTS RESERVE REQUIREMENTS DEBT MANAGEMENT REPAYMENTS REVENUES PORTFOLIO BONDS LOAN DISCOUNT BORROWERS TRADE SECTOR TAX PUBLIC BORROWING NON-PERFORMING LOANS RESERVE CREDITORS INFLATION DEBT BURDEN CREDITOR FOREIGN INVESTMENTS SAFETY NETS BANK LENDING BUDGET MATURITY MACROECONOMIC STABILITY TRADE BALANCE OIL PRICES INVESTMENT SPENDING CURRENCY COMMERCIAL BORROWING ENFORCEMENT OF CONTRACTS COMMERCIAL BANK PORTFOLIOS INCOME GROWTH CONTRACTS INFLATIONARY PRESSURES FINANCES FOREIGN CURRENCIES BOND ISSUANCE TRADING OPTIONS DEBT OUTSTANDING INTEREST RATES MONETARY FUND MARKETS DEBT CAPITAL MARKET INFLATIONARY PRESSURE HOUSEHOLD INCOME INFLATION RATE SETTLEMENT CREDITOR RIGHTS LOANS DIRECT INVESTMENT RESERVES DEBT SERVICE GROSS DOMESTIC PRODUCT MONETARY AUTHORITIES FINANCE FOREIGN CURRENCY PUBLIC INVESTMENT TAXES BANKING SECTOR FISCAL DEFICIT EXPENDITURE DEBT FINANCING INTERNATIONAL STANDARDS CREDIT EXPANSION EQUITY INVESTORS COMMERCIAL BANK LENDING ECONOMIC RISKS HUMAN CAPITAL INTEREST PAYMENTS GOOD GOVERNMENT BUDGET FUTURE FOREIGN DIRECT INVESTMENT RETURNS FARMING HOUSEHOLDS INVESTMENT PROJECTS PRICE CHANGES DISBURSEMENTS EXPENDITURES CREDIT INFORMATION AMORTIZATION ISSUANCE CURRENT ACCOUNT DEFICIT POTENTIAL INVESTMENT LOAN PORTFOLIO MARKET LOCAL CURRENCY NON-PERFORMING LOAN PUBLIC DEBT BALANCE OF PAYMENT SOLVENCY INSURANCE CURRENCIES ECONOMIC DEVELOPMENT INVESTOR GOODS BANK BRANCH LENDING INTEREST RATES INVESTMENT BOND COMMERCIAL BANKS SHARE LOAN PORTFOLIOS INVESTMENT CLIMATE PUBLIC FINANCES POVERTY LOAN SIZE POLITICAL STABILITY CAPITAL INFLOWS BANK SUPERVISION REVENUE EXTERNAL DEBT PROFIT INVESTMENTS LENDING CONSUMER PRICE INDEX CREDIT GROWTH BANKING SECTOR ASSETS MATURITIES EXCHANGE RATE FISCAL DISCIPLINE DEBT SERVICING PUBLIC DEBT STOCK PUBLIC SPENDING COMMODITY PRICES EQUITY STAKES ARREARS CAPITAL ACCOUNT EXTERNAL BORROWING The Lao economy is estimated to have expanded by around 7 percent in 2015, a slight moderation from 7.5 percent in 2014. Similar to the last decade, the resource sectors (hydropower and extractives) continued to make an important contribution to growth. Power generation got a boost from the commissioning of the first two blocks of the 1,878 MW Hongsa lignite power plant and an additional 250-300 MW of installed capacity in the hydro sector. Furthermore, despite lower global commodity prices, mining output still increased as metal prices remained above the mines’ cost recovery levels. The revised State Budget Law, approved in December 2015, enhances the authority of the National Assembly in budget oversight and Ministry of Finance in budget management. In addition, with regards to anti-money laundering and counter-terrorism financing, the Government strengthened key regulations (including on forfeiture of assets, border declaration, penalties for non-compliant entities) recommended by the Financial Action Task Force (FATF), which helped remove Lao PDR from the FATF’s list of ‘jurisdictions not making sufficient progress’. The outlook will depend on the progress in the implementation of the recommendations and agreed measures. GDP is expected to expand at around 7 percent per annum as a healthy pipeline in the power sector keeps investments strong and increases electricity production and exports by almost 40 percent. Stabilization of growth rates in China and some acceleration in Vietnam and Thailand should increase demand for Lao PDR exports. On the other hand, some gradual fiscal consolidation is expected, largely through broadening the revenue base and efforts to improve efficiency in spending and should help strengthen the outlook for public debt sustainability and lower the risk of debt distress from its current level of moderate, but borderline to high. 2016-05-31T20:26:10Z 2016-05-31T20:26:10Z 2016-05-01 Report http://documents.worldbank.org/curated/en/2016/05/26379887/lao-economic-monitor-challenges-promoting-more-inclusive-growth-shared-prosperity-thematic-section-drivers-poverty-reduction-lao-pdr http://hdl.handle.net/10986/24372 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Economic & Sector Work :: Economic Updates and Modeling Economic & Sector Work East Asia and Pacific Lao People's Democratic Republic |