According to the report presented at the 9th Session of the Lao National Assembly (9–26 June 2025), Laos recorded a GDP growth rate of 4.5% in the first half of 2025, against the target of 4.8% set by the National Assembly. To meet the annual goal, the country needs to achieve 4.8% growth in the remaining half of the year. The Lao Government expects that by 2026, Laos will officially graduate from the group of Least Developed Countries (LDCs) and become a developing country under United Nations standards.
The Government has called for nationwide unity and resilience to stabilize the economy, strengthen national finances, boost trade and investment, and ensure national defense and security — all aimed at building a prosperous and sustainable future.
Key Macroeconomic Indicators
Public Budget and Fiscal Management:
The Government continues implementing proactive and autonomous fiscal policies through synchronized measures such as enhancing revenue collection, preventing tax evasion, decentralizing financial management to local authorities, and improving transparency.
In the first half of 2025, total budget revenue reached 37,056 billion kip, equivalent to 108% of the half-year plan and 54.4% of the annual target, accounting for 9.88% of GDP.
Total budget expenditure reached 20,466 billion kip, fulfilling 28.48% of the annual plan.
Inflation:
Inflation declined to 7.2% in the first half of 2025, down from 8.3% in the previous month, marking the lowest year-on-year rate since early 2025 — reflecting continued macroeconomic stabilization.
Exchange Rate:
During the first seven months of 2025, the Lao kip appreciated 0.2% against the USD but depreciated 0.42% against the Thai baht. The average spread between commercial bank rates and the market remained stable at 0.003% for kip/USDand 0.16% for kip/baht.
Foreign Reserves:
As of May 2025, foreign exchange reserves stood at USD 2.76 billion, up from USD 2.45 billion in March and USD 2.1 billion in February, marking a 31.3% increase compared to the end of 2024.
Non-Performing Loans (NPL):
The NPL ratio was 1.44% as of March 2025, on track to meet the target of below 3% by the end of 2025, as approved by the National Assembly.
Trade and International Cooperation
In the first seven months of 2025, Laos’ total foreign trade value reached USD 11.21 billion, up 4.8% year-on-year.
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Exports: USD 5.80 billion (+0.7%)
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Imports: USD 5.41 billion (+9.6%)
Laos’ main trading partners remain Thailand, China, and Vietnam, with ongoing efforts to diversify trade, attract investment, and enhance competitiveness in the regional market.