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Lao PDR and ADB

In the Spotlight

The economy of the Lao People’s Democratic Republic (Lao PDR) continues to grow vigorously. However, because it is a resource-rich country with an economy heavily reliant on mining and hydropower, more focus on diversifying the economy is needed. The government must strive for strong macroeconomic management, a sound fiscal framework, and effective budget management. While the government has consolidated expenditures to contain the deficit, it needs to increase fiscal and foreign reserves to absorb any future shocks.

Under the country partnership strategy, ADB's operations will focus on improving physical connectivity, developing skills that support growth, and ensuring sustainable natural resource management and climate resilience.

The Lao PDR is a member of the Greater Mekong Subregion (GMS).


Projects in Lao People's Democratic Republic