Washington, DC:An International Monetary Fund (IMF) delegation led by Mr. Alasdair Scott, Mission Chief for Lao P.D.R., conducted discussions in Vientiane with the authorities for the 2024 Article IV Consultation from May 16 to 29, 2024. The team held meetings with senior officials from the Bank of the Lao P.D.R., Ministry of Finance, and other government agencies, and with private sector representatives. The discussions covered macroeconomic developments, prospects and challenges, and policies.
"Notwithstanding solid growth this year, supported by the tourism and resources sectors, the economic situation remains very challenging. Despite fiscal consolidation, public debt remains elevated and government financing needs will increase. Exchange rate depreciation continues and high inflation persists. The authorities' reforms to bolster revenues are welcome, as are the initial steps to tighten monetary policy and improve monetary management, and plans to strengthen the financial sector. The mission encourages the authorities to pursue additional fiscal, monetary, and financial policies to stabilize the macroeconomic situation, and stands ready to provide policy advice and technical assistance.
"We would like to thank the authorities for the helpful discussions and their support during the Article IV visit."
