Special Report: Global Financial Crisis

    HANOI, March 23 (Xinhua) -- The Lao National Economic Research Institute predicted Lao economy growth rate to be seven percent this fiscal year, about one percentage point lower than the government target due to the impacts of the ongoing global financial crisis, the Lao newspaper Vientiane Times reported Monday.

    The government planned last year it would achieve an economic growth rate of 7.5 to 8 percent this fiscal year and has maintained this forecast despite the onset of adverse effects from the global economic crisis.

    According to Head of the Lao National Economic Research Institute Liber Libuapao, the institute had conducted a study on the country's economic performance in fiscal year from 2008 to 2009 after Laos began feeling the adverse effects of the global financial crisis in the second half of last year.

    The postponement of some major foreign investments in hydroelectric power plants and falling prices of copper and agricultural products were the major reasons why the economy would not reach growth rate target this year, said Liber.

    In the first quarter of this fiscal year, Laos achieved a total export turnover of 270 million U.S. dollars, an increase of about seven percent over the same period last year. But this rate still fell short of planned target, according to the Lao Ministry of Industry and Commerce.

    To ensure the government's target of economic growth, he proposed some measures taken by the government such as introducing an economic stimulus package, with focus placed on boosting local production and consumption and improving the tourism sector by offering visa exemptions to nationals of some foreign countries.

    On a global scale, the projection of seven percent growth in Laos was relatively positive given the number of economies being forecasted negative growth this fiscal year.