Press Release No. 16/106

Press Release: Statement by IMF Managing Director Christine Lagarde at the Conclusion of her Visit to Lao P.D.R.

March 15, 2016

Ms. Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today at the conclusion of her visit to Lao P.D.R.:

“I wish to thank President Choummaly Sayasone, Deputy Prime Minister Thongloun Sisoulith, Central Bank Governor Somphao Phaysith and other senior government officials for their warm hospitality and fruitful exchange of views during my visit to Vientiane.

“I complimented government officials for the important achievements of the Lao economy, including robust growth, based on substantial public investments and deeper economic integration with neighboring countries. This economic expansion has brought a solid decline in poverty and important improvements in social welfare. I also pointed to recent achievements in bringing down the fiscal deficit in the last three years, which has helped safeguard macroeconomic stability and set the stage for sustainable growth going forward.

“Economic prospects for Lao P.D.R. remain favorable. However, to safeguard macroeconomic stability during the transition out of low-income country status in the medium-term, it will be important to strengthen the economy’s resilience to external shocks and put in place the conditions for sustainable growth.

“These steps include: continued investments in education and social infrastructure to ensure rising living standards; implementation of fiscal reforms so that a more efficient public administration can support public investment while maintaining the path of fiscal consolidation; continued efforts to accumulate international reserves and develop the financial system; and better quality and timely release of statistics.

“I emphasized the determination of the IMF to continue to be a close partner for Lao P.D.R. in its drive for development to graduate from low-income country status by 2020. In recent years we have sought to deepen our policy dialogue and capacity building by re-establishing our local office in Vientiane and providing IMF technical support focused on strengthening macroeconomic management and ensuring conditions for sustained growth.

“Once again, I would like to thank the authorities and the people of Lao P.D.R. for their warm hospitality and look forward to continuing our close cooperation.”