NERI says 25th Sea Games is a stimulant to Lao economy

KPL) Acting Head of the National Economic Research Institute claimed that the 25th SEA Games, to be held in December this year, would act as a stimulus to the national economy and thereby mitigates the adverse effects of the global economic turmoil.

Mr. Leeber Libuapao also said that the national economic growth is facing a big challenge this year because of the sharp drop in the export of goods.

Mr Leeber added that although the government has designed and implemented measures to try to minimise and overcome the effects of the global crisis but it would take at least a few months before one sees its positive effects.

He also said that the national economic recovery, due to commence in 2010, would only kick in if it coincides with the recovery of the world’s economy by next year and it means that if it would grow by one to two per cent in 2010.

However, the Asian Development Bank, in its press release yesterday, is upbeat on the Lao economy and stated that it would grow by 5.5 per cent this year and 5.7 per cent in 2010.

The acting head of NERI commented on the effects of the biggest hydropower project, Nam Theun Two, on the national economy and said that when it is operational in late 2009, it would generate income and this would not only mitigate the impact of the crisis but it can even boost national economic growth.

Mr. Leeber said that in order to get the Lao economy to grow one should get the consumers to spend and this is because national expense is always equal to national income and the government and people should be aware that consumers who retrench and save money would not be contributing to economic growth.