Laos - Inflation rate down, kip appreciates leading to expensive food

(KPL) The current inflation rate of kip currency this month has constantly depreciated since late last year, according to the source of the Bank of Lao PDR.

The rate of inflation stood at 6.69% last month till this month fell by 0.1% compared to the same previous representing an increase 7.70%.

The first month of this year’s inflation rate of Laos will be a considerably positive figure and stood at the ordinary level compared to the same period of last year was a rise of 0.06%.

Lao economy has considerably risen despite the global financial crisis. The growth of macro-economy averaged 7.7% of all fields relying on the export sector of precious metal ores. This sector was higher than other sectors.

Since 2000 the growth of Lao economy has been averaged 7.7%. Between 2005-2010, the mining and electricity sectors were the main export and considered being higher than other sector.

A recent report of the World Bank has released the economy of Lao PDR has been considerably strong thanks to unexpectedly rapid recovery of precious metal ores price and the growth of government’s credit loan policy despite the global financial crisis stretch in recent year. This led the GDP grown by 8.4 in 2010.

The volume of mining export in 2009 was the consequence of payment of international imbalance account decreased to 10% of GDP in 2010 from 13.6% in 2009.

The volume of national money inflow represented at a high level but the trend capital will drop due to the global financial crisis. This led to the national profit from export increased to 12.4% of GDP in 2009 from 10.1%.

The World Bank also forecasted the GDP of Lao PDR rapidly grown by 8% in 2011 meanwhile the inflation also was a low level.

2011-2012 the overseas investment in Laos sounds good due to recovery of the global financial crisis, including agriculture, industrial processing, service and mining.

An economist of National University of Laos said that the inflow of investment led to the appreciation of kip currency and the expensive foodstuffs if the surplus volume of import in the increased population.

Vinnaly

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