Representatives from the Lao and Australian governments, ANZ Laos and its partners attend the economic outlook event in Vientiane.

 Laos’ economic outlook brightens amid global shifts

Optimism is cautiously returning to the Lao economy. With the market emerging from a period of economic turbulence, there’s now a growing sense of resilience and forward-looking optimism among business leaders.
Speaking at an economic outlook event co-hosted by the Australia and New Zealand Banking Group Limited, Laos Branch (ANZ Laos) and AustCham in Vientiane on October 23, ANZ’s Khoon Goh said Laos would benefit from shifting economic trends in broader Asia.

Representatives from the Lao and Australian governments, ANZ Laos and its partners attend the economic outlook event in Vientiane.

“Asia is entering a phase of moderated growth, but Laos is uniquely positioned to benefit from regional tailwinds, particularly in tourism and services,” Goh, Head of Asia Research at ANZ, said on the sidelines of the event. 
According to ANZ Research’s latest forecast, Laos is expected to achieve 4.8 percent GDP growth in 2025 – one of the strongest performances in the region.
Inflation, which had peaked at 41 percent year-on-year in early 2023, has now fallen to single digits, with ANZ Research projecting an average of 7.6 percent for 2025.
“The kip has stabilised, and we expect modest appreciation to 21,450 by year-end,” Goh said, citing improvements in Laos’ current account balance and foreign exchange regulations.
Goh spoke alongside the Director General of the Banking Operations Department at the Bank of the Lao PDR, Mr Phetsathaphone Keovongvichith.
The speakers were joined by leaders and policymakers from across Laos at a function which offered timely insights into how global macroeconomic trends are shaping Laos’ recovery.
Speaking after his presentation, Mr Phetsathaphone reaffirmed the central bank’s commitment to maintaining price stability and economic recovery, citing recent policy adjustments such as tighter FX management and debt restructuring.
“These efforts have helped ease pressure on the kip and restore investor confidence,” he said.
Both Mr Phetsathaphone and Goh acknowledged the challenges Laos continues to face but emphasised its progress in building a sustainable economic foundation.
ANZ Country Head Laos, Bernadette Shaw, said the insights from the guests had helped foster dialogue between the public and private sectors. Attendees at the event included representatives from leading Lao businesses, international investors, and development partners.
“Today has helped underscore the importance of continued reform, transparency, and regional cooperation,” Shaw said.
“With strategic policy moves and a favourable regional outlook, the Lao economy appears to be turning a corner; one that could unlock new opportunities for growth, investment, and prosperity.”

By Advertorial Desk
(Latest Update October 27, 2025)