VIENTIANE, Oct. 1 (Xinhua) -- The Asian Development Bank (ADB) has revised Laos' economic growth forecast down to 3.7 percent for 2025 and 3.8 percent for 2026, citing concerns over debt vulnerabilities, weak demand, and tariffs.
In its April 2025 report, the ADB projected moderate economic growth for Laos, estimating a 3.9 percent increase in 2025 and 4 percent in 2026. However, in its updated outlook report released on Tuesday, the ADB revised these forecasts due to ongoing economic pressures. Although inflation has eased, providing some relief, ongoing trade tensions and fiscal constraints may further slow recovery beyond previous expectations.
Services will remain the primary driver of Laos' economic growth in 2025, with the sector expected to expand by 4.5 percent. The tourism sector has made a strong recovery, with 2.3 million arrivals in the first half of 2025, benefiting from improved regional connectivity and targeted marketing efforts. This growth has positively impacted the retail, hospitality, and transportation industries.
The industrial sector is forecast to grow by 3.6 percent, supported by gains in energy and manufacturing. Electricity production rose by 3.2 percent in the first half of 2025 and is projected to expand by 6.5 percent by year-end. Agriculture is expected to see modest growth of 1.3 percent, bolstered by favorable weather conditions.
"Despite the challenges, we remain optimistic about Laos' growth potential. The Lao government's efforts to manage debt and stabilize the economy are commendable, and ADB will continue to support Laos in achieving sustainable development," said ADB Country Director for Laos Shanny Campbell. ■
