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

IMF News, September 8, 2016

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

Press Release No. 16/398
Date: September 8, 2016
Issued by: IMF Communications Department, MEDIA RELATIONS
PRESS OFFICER: Keiko Utsunomiya
- Phone: +1 202 623-7100
- Email: MEDIA@IMF.org
Christine Lagarde thanked Prime Minister Thongloun Sisoulith, Deputy Prime Minister and Minister of Finance Somdy Douangdy, Central Bank Governor Somphao Phaysith, other senior government officials, and the people of Lao P.D.R. for warm hospitality and fruitful exchanges.
Activities during the visit:
- Attendance at the ASEAN Business and Investment Summit on ASEAN Economic Development Perspectives.
- Meetings with ASEAN Heads of State and government officials from Lao P.D.R.

ASEAN has growing economic and strategic importance, located in a region with ample natural resources and emerging middle classes.
ASEAN has achieved rapid rates of growth of around 5 percent in recent years through a shift to domestic-led growth, while maintaining open markets and continuing gradual regional integration.
Convergence in real per capita incomes has been slowing, both within ASEAN and between ASEAN and advanced countries.

Implement growth-supporting monetary and countercyclical fiscal policies.
Adopt more flexible exchange rates to help manage risks from financial volatility.
Undertake subsidy reforms.
Increase and more evenly distribute infrastructure spending.
Enhance legal frameworks for private participation in infrastructure and investment.
Strengthen public education systems.
Develop deep domestic financial markets.
Build resilience and expand financial access.

Lao P.D.R.’s economic growth has been impressive, but domestic and external vulnerabilities remain.
Importance of safeguarding macroeconomic stability as the country transitions out of low-income country status.

Maintain momentum of fiscal consolidation to reduce public debt.
Diversify the economy.
Implement fiscal reforms, including:
- Tax policy and administration reforms.
- Public financial management reforms.
- Debt management reforms.
Continue investments in education and health to support productivity growth and export diversification and to distribute benefits more widely.
Continue to accumulate international reserves.
Address weaknesses in the banking system and improve supervision.

Lagarde expressed appreciation for the authorities and people of Lao P.D.R. and looked forward to continuing close cooperation.

Statement by IMF Managing Director Christine Lagarde at the Conclusion of her Visit to Lao P.D.R., September 8, 2016