Economic woes will dampen investor confidence in Laos

Significance Issues such as soaring inflation, currency depreciation and debt repayment problems are having a major impact on the economy. The World Bank estimates that GDP grew by 3.7% in 2023, far below the 7.3% averaged between 2010 and 2019. Impacts Preoccupation with economic challenges will keep constraining the government’s capacity for action during its ASEAN chairmanship this year. Chairing ASEAN will bring greater visibility to Laos's tourism sector but also highlight the debt repayment difficulties. Debt deferrals from China, the top creditor, will somewhat ease repayment burdens in the immediate term.