Mr Khamjane Vongphosy addresses the National Assembly.

Govt sets GDP 4.5 percent growth target 

The government has set the target for GDP growth at a minimum of 4.5 percent over the last six months of this year.
This will require the value of growth to be 202,622 billion kip, with per capita GDP of 1,756 kip per year, and is an ambitious target given the spiralling inflation rate, unfavourable currency exchange rates, and the skyrocketing price of fuel.
The figures were announced by Minister of Planning and Investment Mr Khamjane Vongphosy on Monday when addressing the first day of the National Assembly (NA)’s 3rd Ordinary Session. Growth in the agriculture sector is expected to reach 2.9 percent, equal to 15.9 percent of GDP, while the NA ratified a growth rate of 2.7 percent or 16.7 percent of GDP, he said. The industry sector is expected to see growth of 4.4 percent, equal to 35 percent of GDP, while the NA ratified a growth rate of 5.3 percent or 34 percent of GDP.
The service sector has been allocated a target growth rate of 4.9 percent, equal to 37.6 percent of GDP, while the NA ratified a growth rate of 4.5 percent or 38.9 percent of GDP.
The contribution from the tax and customs sector is expected to expand by 4.1 percent, equal to 11.4 percent of GDP, with the NA ratifying a growth rate of 4 percent equalling 11.5 percent of GDP, Mr Khamjane said. In addition, the government aims to collect total revenue of 31,593 billion kip, with expenditure set at 34,691 billion kip, resulting in a budget deficit of 3,098 billion kip. These are the same figures approved by the National Assembly.
To achieve these goals, the government will continue to focus on essential priorities including the management of currency exchange rates, stabilising product prices, and effective management of inflation, Mr Khamjane said.
Of particular importance on the government’s development agenda are the promotion of agricultural products, the processing industry and the service sector, alongside the reform of strategic plans to utilise essential tools for revenue collection and expenditure, he added. Amongst these priorities, the government also plans to develop human resources, improve people’s livelihoods, and upgrade infrastructure for regional and international connectivity and effective public administration.
Over the first six months of this year, the GDP growth rate was 4.3 percent, worth 95,212 billion kip and equal to 49.6 percent of GDP.
The agriculture and forestry sector grew by 2.2 percent, below the planned rate of 2.7 percent; growth in industry reached 5.1 percent, less than the planned rate of 5.3 percent; the service sector saw 4.2 percent growth, less than the planned 4.5 percent; and the customs and tax sector grew by 4.3 percent, in excess of the target growth figure of 4 percent, Mr Khamjane said.
Meanwhile the government sourced total revenue of 10,633 billion kip, equal to 33.66 percent of GDP and an increase of 23.7 percent or 2,037 billion kip compared to the first six months of 2021. Expenditure amounted to 8,849 billion kip, equalling 27.24 percent of the target figure.

By Times Reporters
(Latest Update June 15, 2022)