16 Jan, 2026
Laos Targets 6 Percent Economic Growth in 2026 Amid Reforms, Election Preparations
The Lao government has set a target of at least six percent economic growth in 2026, supported by fiscal reforms, major infrastructure projects, and preparations for national elections, officials said.
Government Spokesperson Sonexay Sitphaxay announced the target on 13 January following the Second Enlarged Government Meeting held from 12 to 13 January.
A key pillar of the 2026 agenda is strengthening public finances. Authorities aim to raise state revenue to at least 20 percent of gross domestic product through reforms to modernize tax and revenue collection systems.
Officials said the measures are intended to close tax gaps, improve compliance, and increase efficiency.
Inflation control remains a priority after consumer prices declined from a peak of 31.23 percent in 2023 to 23.13 percent in 2024 and 7.7 percent in 2025.
The government is implementing policies to stabilize the exchange rate, strengthen the Lao kip, and expand the use of local currency in regional trade.
Infrastructure and Energy Development
Alongside fiscal measures, the government is emphasizing infrastructure development as a long-term driver of growth and regional integration.
Several large-scale projects have been approved or are moving into early implementation stages.
Among them is Phase I of the Laos–Vietnam railway, a 147-kilometer section linking Thakhek district to the Laos–Vietnam border in Khammouane Province under a build-operate-transfer model.
The project is expected to complement existing rail connections with China and Thailand. Plans are also underway for a second railway bridge across the Mekong River linking Vientiane Capital with Thailand’s Nong Khai Province.
Energy development remains another core pillar of the growth strategy, supporting both domestic demand and power exports to neighboring countries.
The sector continues to attract investment in clean energy and cross-border transmission. Reflecting this push, Laos inaugurated a 1,000-megawatt solar power plant in Oudomxay Province in mid-December 2025, the largest such facility in the country to date.
The government is also preparing for elections to the 10th National Assembly scheduled for 22 February, while continuing efforts to graduate from least developed country status in 2026.
Under the 10th Five-Year National Socio-Economic Development Plan for 2026–2030, authorities are targeting average annual economic growth of at least six percent, with gross domestic product per capita projected to reach USD 3,104 by 2030.