Mekong Memo Laos 20230927
Mekong Memo Laos Weekly, September 27, 2023: Business, politics, finance, trade & legal news.
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Here is your Mekong Memo Laos for the week of September 27, 2023:
Inflation's Grip: Families and Schools Feel the Heat
A recent World Bank survey reveals that escalating inflation in Laos is compelling families to curtail spending on essentials like food, health, and education. Conducted in mid-2023, the survey found 87% of households feeling the pinch of inflation, leading many to alter their food habits or intake. The economic strain has also impacted education, with over 14% of children from low-income families not attending school. Despite measures by the Lao government to stabilize the economy, inflation remains a significant concern, with the Lao kip depreciating and household incomes struggling to keep pace.
Read more: The Star
ADB's New 2023 Forecast: Laos Takes a Hit
The Asian Development Bank (ADB) has reduced its 2023 growth prediction for the Lao economy to 3.7%, a decrease from the previously projected 4.0% in April. This revision, as detailed in the Asian Development Outlook September 2023, is attributed to the economic slowdown in China, mounting public debt, and the depreciation of the Lao currency, the kip. Despite a recent decrease in inflation rates, Laos still faces one of the highest inflation rates in the region, driven primarily by the weak kip.
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