The ADB lowered Laos’ 2023 economic growth forecast to 3.7% from 4%, citing recent floods, rising public debt, and a weakening Lao currency, the kip. With inflation driven by food prices and the weak kip, it’s estimated to average 28%. Despite being one of the region’s highest, inflation declined from 41.3% in February to 25.9% in August. Laos displayed resilience in H1 2023, buoyed by domestic demand and China’s economic rebound.