People join traffic in Vientiane, Laos (Photo: Xinhua/VNA)Vientiane (VNA) – The Lao economy is projectedto grow by 4.2 percent in 2022, driven by commercial production for exports andopportunities and benefits arising from the China-Laos Railway, reportedVientiane Times on December 17.
The rail link, which became operational recently, willenable Lao products, notably agricultural goods, to have better access to theChinese market, according to the latest report from the Lao National EconomicResearch Institute.
The Lao government aims to make the country a regional huband offer transit services. The country will also seek to capitalise on all thepotential provided by the railway, officials said.
In 2021, the Lao economy is projected to grow at a rate of 3percent, lower than the goal of 4 percent approved by the National Assembly.
The slower growth is being linked to the prolonged lockdownimposed to contain the spread of COVID-19. The pandemic interrupted economicactivities and forced companies, retail and wholesale shops and factories toshut down, impacting employment rates.
The report said that the Regional Comprehensive EconomicPartnership (RCEP), the world's largest free trade deal which will becomeeffective from January 1, 2022, will create favourable conditions for moretrade, foreign investment and tourism in Laos.
The acceleration of vaccination rates and people's adaptationto the "new normal" will enable Laos to reopen its borders, revitalisethe services sector, and fuel the growth of production for exports.
The report forecast that the Lao economy will slightlyrecover in the medium term, but growth will be lower than the pre-pandemiclevel./.
