IMF pledges ongoing support to up financial management in Laos

THE International Monetary Fund (IMF) will continue to support Laos in its aims to strengthen financial administration.

IMF resident representative for Laos Jonathan Dunn gave the reassurance to Minister of Planning and Investment Souphanh Keomixay during an official visit to the ministry last week.

Dunn said he hoped IMF’s support would help to reduce the level of Laos’ public debt, saying doing so would have a positive effect on macroeconomic stability.

IMF’s support is targeting at training for officials, aiming to strengthen their abilities in financial administration as well as evaluation of the economy.

IMF has previously warned that Laos’ rising public debt could lead to a “shock” which could hamper economic growth.

Dunn said it was critical for Laos to improve the business climate along with education and skills development, to supply the necessary work- force for the industrial sector.

Souphanh highlighted IMF’s successful cooperation with and support for Laos over the years and particularly the advice of Dunn, who had contributed to the evaluation of growth and macroeconomic stability.

Laos is on the right track to further integrate its economy with other Asean members but needs to boost productivity to increase exports and change the structure of production towards value-added manufacturing and services.

Previous IMF outlook data estimated that growth in the Asia-Pacific region would remain at more than five per cent as the region continues to be the leader in global growth.

Laos’ economy continues to perform well, supported by a favourable external environment and strong flows of foreign direct investment from its dynamic neighbours.

Growth in recent years has been supported by the expansion of electricity exports, construction activity, and financial services.