In the first nine months of this year, the country recorded a gross domestic product (GDP) growth of 4.4 percentage points, slightly higher than planned to close in 2023 (4.2), Vongphosy pointed out when addressing the participants. in the sixth session of the National Assembly. (Parliament).
The minister recalled that the objective initially set for the current year was growth of 4.5 percent and argued that it could not be achieved due to the increase in production costs and the drought affecting hydroelectric generation.
Earlier, when the Legislature presented the mid-term report of the five-year National Socioeconomic Development Plan (2021-2025), Prime Minister Sonexay Siphandone noted that Laos has been able to progress steadily in the past two and a half years on an annual average. of 4,03 percent.
This was achieved despite the fact that the country had to face many difficulties and challenges that have not been experienced for many years, due to the national, regional and global environment, explained the head of the Government and detailed that the highest growth rate (4.53 percent percent. on average) achieved in the industry.
He also pointed out that the service sector recorded the best performance in terms of GDP contribution, with 37 percent, followed by industry (33.4), agriculture and forestry (18.4), and taxes and tariffs (11,23).
He also emphasized that, thanks to the efforts to reform the income and expenses along with the modernization of the tax collection system, the revenue collection exceeded the objective for two consecutive years.
The increase in income and the cutting of unnecessary expenses allowed the budget deficit to be reduced, while the debt service also showed positive signs by meeting the planned payment deadlines, he said.
According to Siphandone, the government’s measures to strengthen foreign exchange reserves and reduce inflation are intensifying, while export earnings from 31 percent of the total in 2020 to 41.32 percent in the first nine months in 2023.
This success, he said, helped mitigate the sharp fluctuations in exchange rates and reduce inflation from 40 percent in mid-2022 to 25.69 percent in September 2023, although the costs of living standards remain high, which weakens the purchasing power of the household, he said.