Lao People's Democratic Republic: Staff Report and Public Information Notice
IMF Staff Country Reports, February 7, 2011
Source details
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- Lao People's Democratic Republic: Staff Report and Public Information Notice
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Bibliographic details
- Published: February 7, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455216666.002
Overview
- Recent economic development and outlook of Lao are discussed in this study.
- The economy continued to exceed its macroeconomic speed limit in 2009, putting pressure on the balance of payments.
- Discussions centered on policies required to maintain near-term macroeconomic stability and stem the decline in net foreign assets (NFA) of the banking system.
- IMF staff noted that the overall fiscal deficit should be put on a medium-term consolidation path.
Key findings
- The economy exceeded its macroeconomic speed limit in 2009.
- This excess growth put pressure on the balance of payments.
- Net foreign assets (NFA) of the banking system were declining and required measures to halt the decline.
Outlook and projections
- The outlook for GDP growth in 2010 is favorable.
- Inflation is likely to remain moderate.
Policy recommendations and priorities
- Maintain near-term macroeconomic stability through appropriate policies.
- Stem the decline in net foreign assets (NFA) of the banking system.
- Put the overall fiscal deficit on a medium-term consolidation path.
Subjects and keywords
- Subject: Banking, Commercial banks, Credit, Debt sustainability analysis, External debt, Financial institutions, Money, Public debt
- Keywords: Asia and Pacific, Commercial banks, CR, Credit, credit growth, debt, debt service, Debt sustainability analysis, deficit, East Asia, foreign currency, Global, ISCR, Lao P.D.R. authorities, Lao PDR, long position, U.S. dollar
Source: Lao People's Democratic Republic: Staff Report and Public Information Notice (IMF Staff Country Reports 2011, 044).