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COVID-19 AND THE WAR IN UKRAINE
News & Publications
Structural Reforms to Lift Growth: Lao People's Democratic Republic
Against the backdrop of improved macroeconomic stability and Lao People’s Democratic Republic (Lao PDR)’s ambition to achieve upper-middle-income (UMI) status by 2035, this paper examines the impact of structural reforms on Lao PDR’s growth outcomes. The analysis documents the significant structural gaps in Lao PDR relative to upper middle-income countries (UMICs), especially in governance, business regulations, labor market and human development. These gaps suggest there is substantial scope for structural reforms in Lao PDR to catch up with its aspirational peers and boost potential growth. Cross-country evidence suggests that structural reforms significantly boost output over time, with a persistent positive impact which cumulates over time. Thus, implementing ambitious structural reforms—to strengthen governance, improve the business environment, and promote human development—to close structural gaps with UMICs would deliver large growth gains, especially over the medium term, and help Lao PDR achieve its development goal in a sustainable manner.
How Fragile States Can Gain by Strengthening Institutions and Core Capacities
The costs of fragility are high, but judicious economic policies can help foster trust and support economic stability and growth
Europe Can Regain Its Productivity Edge by Scaling Up
Capital markets integration, expanding opportunities for workers, and bigger consumer markets will allow companies to grow faster
Adequate Reserves Shield Economies From Shocks and Strengthen Resilience
Building foreign exchange reserves requires sound policies and takes time, but global efforts to lower the cost of holding them can help
Debt Confronts Policymakers With Difficult Trade-offs
There are few elegant, easy, or politically attractive ways to reduce debt
Stock-Bond Diversification Offers Less Protection From Market Selloffs
Diversification has become harder since 2020 as stocks and bonds tend to move in tandem during sharp selloffs, adding to financial stability concerns
Global Economy Shakes Off Tariff Shock Amid Tech-Driven Boom
But risks are rising, including from the concentration of tech investment and the negative effects of trade disruptions, which may build over time
Podcast: Navigating a More Fragile World
With shock upon shock hitting the world economy in the last three years, IMF Managing Director Kristalina Georgieva's customary opening speech to the Annual Meetings warned of a darker global outlook and emphasized the need for the world to come together to deal with the consequences.
