IMF chief calls Laos to strengthen basis of future economic growth

International Monetary Fund (IMF) Chief Christine Lagarde has pledged support for Laos while calling for further moves to strengthen the basis of future economic growth to achieve the country's goal of graduation from least developed status by 2020.

Lagarde made the calls following visits to the country's President Choummaly Sayasone and Deputy Prime Minister and Minister of Foreign Affairs Thongloun Sisoulith and other high-ranking officials in the Lao capital Tuesday.

In Laos, she recommended investments in education and social infrastructure, implementation of fiscal reforms, continued efforts to accumulate international reserves and improvements in the quality and timeliness of statistics release, according to a statement released by the IMF.

"Economic prospects for Lao P.D.R. remain favorable," Lagarde said.

"Important achievements of the Lao economy include robust growth based on substantial public investments and deeper economic integration with neighboring countries."

"Recent achievements in bringing down the fiscal deficit in the last three years, which has helped safeguard macroeconomic stability and set the stage for sustainable growth going forward."

"However, to safeguard macroeconomic stability during the transition out of low-income country status in the medium-term, it will be important to strengthen the economy's resilience to external shocks and put in place the conditions for sustainable growth." Enditem