## Lao People’s Democratic Republic: 2019 Article IV Consultation — Press Release; Staff Report; Statement by the Executive Director for Lao People's Democratic Republic

_IMF Staff Country Reports, August 8, 2019_

## Source details

**Canonical URL:** [Lao People’s Democratic Republic: 2019 Article IV Consultation — Press Release; Staff Report; Statement by the Executive Director for Lao People's Democratic Republic](https://www.imf.org/en/publications/cr/issues/2019/08/08/lao-peoples-democratic-republic-2019-article-iv-consultation-press-release-staff-report-48577)

## Other formats

- [Markdown version](/en/publications/cr/issues/2019/08/08/lao-peoples-democratic-republic-2019-article-iv-consultation-press-release-staff-report-48577/index.md)
- [Structured JSON version](/en/publications/cr/issues/2019/08/08/lao-peoples-democratic-republic-2019-article-iv-consultation-press-release-staff-report-48577/index.json)
- [Bundle manifest](/en/publications/cr/issues/2019/08/08/lao-peoples-democratic-republic-2019-article-iv-consultation-press-release-staff-report-48577/bundle-manifest.json)

## Bibliographic details
- Published: August 8, 2019
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513510491.002

---

### Key findings and country context
- After more than a decade of high growth with low inflation, the country is solidifying its progress toward graduating from the Least Developed Country (LDC) status.
- More than one-fifth of the population remains poor.
- Regional disparities are persistent.
- Recurring natural disasters pose risks for poverty reduction.
- A large current account deficit, low level of reserves, a high level of debt, managed exchange rate, and a dollarized banking system amplify macro-vulnerabilities.
- The authorities recognize the current economic challenges and have comprehensive reform programs aimed at rebalancing the economy from a resource based to a more diversified growth model by investing in human development and improving competitiveness.
- Modernizing monetary governance and building reserves supported by greater exchange rate flexibility are recommended to help mitigate external shocks in an uncertain global environment.

### Macro-vulnerabilities and financial system characteristics
- External sector:
  - Large current account deficit.
  - Low level of reserves.
- Public and external debt:
  - High level of debt.
- Exchange rate and monetary conditions:
  - Managed exchange rate.
  - Dollarized banking system.
- Poverty and social risks:
  - More than one-fifth of the population remains poor.
  - Recurring natural disasters threaten poverty reduction gains.
- Structural features:
  - Economy currently resource based; authorities aim to diversify growth.

### Policy directions and reform priorities
- Rebalance the economy from resource based growth to a more diversified model.
- Invest in human development to support inclusive growth.
- Improve competitiveness to attract sustainable investment and growth.
- Modernize monetary governance.
- Build international reserves.
- Increase exchange rate flexibility to better absorb external shocks.

### Report and publication note
- This assessment is presented in the 2019 Article IV Consultation package for Lao People’s Democratic Republic.

*International Monetary Fund. Lao People’s Democratic Republic: 2019 Article IV Consultation-Press Release; Staff Report; Statement by the Executive Director for Lao People's Democratic Republic, August 8, 2019.*

---

## Content in this bundle

- **1laoea2019002**
  - [1laoea2019002 (Markdown version)](/-/media/files/publications/cr/2019/1laoea2019002.pdf.md){rel="alternate" type="text/markdown"}
  - [1laoea2019002 (PDF)](/-/media/files/publications/cr/2019/1laoea2019002.pdf){rel="external" type="application/pdf"}

---

_Source: https://www.imf.org/en/publications/cr/issues/2019/08/08/lao-peoples-democratic-republic-2019-article-iv-consultation-press-release-staff-report-48577_