Laos reported a trade deficit of USD 88 mln in August. The ongoing trade deficit is concerning for the Lao government due to its impact on FX reserves and subsequent effects on the nation’s currency exchange rates. One significant outcome of this deficit is the depreciation of the Lao currency kip, which fuels inflation—especially since around one-third of goods in the inflation calculation basket are imported. The kip has seen a decline of over 13% YTD.