Over half a century ago, Lao PDR began its journey to become a modern nation and committed itself to long-term development ambitions. It has delivered electricity, schools, roads, and has become an important energy exporter.
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Key FindingsEconomic outlookGrowth is projected at 7.2% in 2014, with a moderate slowdown on the 8.1% recorded for 2013. Growth continues to be fueled by the resource sector, continued FDI-financed investment... Show More + in hydropower, and accommodative macroeconomic policies. The resource sector is expected to provide a smaller direct contribution to growth in 2014. This is due to most major projects are under construction and not expected to commence operation this year. It is also due to expected lower gold production, which is likely to offset some of the gains expected from higher copper production.In the 2012/13 financial year, the fiscal deficit widened significantly, due to a combination of a large increase in public sector wages and benefits, and a decline in grants and mining revenues. The primary cause of the expanded deficit was due to an almost doubling of the total public expenditure on civil service wages and benefits.The 2013/14 budget plan indicates a slightly narrower fiscal Show Less -