The Asian Development Bank Outlook report says the economies of Laos, Cambodia and Vietnam grew fastest last year in Southeast Asia. The A.D.B. adds that the Lao economy will continue to expand this year, driven by large investments in power projects - with growth expected to top seven percent.
The World Bank also projects Laos economy to grow at 7.1 percent in 2006 and to continue growing steadily at 6-7 percent in the future. However, a large part of this growth comes from increased foreign investment flows in hydropower and mining. The Bank says without large projects, increased investment and exports in these sectors, real growth would have been about one third lower.
Therefore, promoting growth in sectors other than mining and hydropower is increasingly important for ensuring stable growth in the long-run.
Listen to our Special Report on Laos' economy for more details.