Laos’ economy is projected to grow by 3.9% in 2025 and 4.0% in 2026, supported by logistics and tourism, according to the ADB. The central bank’s policy tightening in late 2024 helped stabilize the exchange rate and slow inflation, with the kip depreciating 5.4% vs. USD but gaining 1.2% against the THB. Annual inflation averaged 23.3% in 2024 and is forecast to fall to 13.5% in 2025 and 10.4% in 2026.