MOIT VIETNAM | Economies of Laos and the Philippines are suffering from rampant inflation.
/ News / Activities
Economies of Laos and the Philippines are suffering from rampant inflation.
On February 7, 2023, the Philippine Statistics Authority (PSA) announced that the country's inflation rate in January 2023 reached 8.7%; this is the highest inflation level since November 2008. In particular, core inflation (excluding energy and perishable foods) increased by 7.4% in January 2023.
During the press conference, Mr. Dennis Mapa, chairman of the Philippine Statistics Authority, said that the primary reason for the increase in inflation is the 8.5% rise in prices for basic necessities including housing, power, water, and gasoline. Also adding to the aforementioned inflation rate is the 10.7 percent rise in the price of food and non-alcoholic beverages, as well as the 7.6 percent inflation in the price of services provided by restaurants and hotels.
As the global economy is expected to continue its sluggish recovery in the years 2023 and 2024, the Philippine government expects inflationary pressures to subside during this time.
On February 7, 2023, the Lao Statistics Department revealed that the inflation rate in January 2023 reached 40.3%, an increase of 1.03% over the previous month. This rate is more frightening than the inflation experienced by the Philippines. Inflation in this nation has never been higher than 40.3% in the previous 23 years.
The production of agricultural and industrial goods, including equipment, food, cattle, fertilizers, etc., is directly impacted by the rising cost of fuel. Meanwhile, these are the primary items imported into Laos from neighboring nations. As a result, inflation rises and the Lao Kip continues to lose value against the US dollar and the Thai baht. Inflation in Laos reaches 23% in 2022, up 19.2% from the previous year.
In order to combat the worsening inflationary situation, the Laotian government swiftly and drastically implemented a number of policies aimed at preventing the depreciation of the kip. These included increasing interest rates, tightening credit, importing essential goods using foreign exchange reserves, and controlling exchange rates strictly.
In addition to guaranteeing a minimum economic growth of 4.5% in 2023, the Laotian government has pledged to bring inflation down to 9%. The country's Statistics Department is hopeful that inflation would decline by the end of this year when the government's price control plans take effect. However, they are presently projecting that inflation will continue at double digits in the first and second quarters of 2023./.
-
/ News
The First Vietnam-Laos-Cambodia Border Defense Friendship Exchange
In an unprecedented tripartite defense engagement, the opening ceremony of Vietnam-Laos-Cambodia Border Defense Friendship Exchange was held today,...
-
/ News / Activities
Laos Encourages Agricultural Commodity Production with New Credit Policies
Vientiane, Laos – In a significant move to increase agricultural commodity production, the Lao government has unveiled a series of credit policies ...
-
/ News / Activities
Tri-Border Landmark: A Testament to Vietnam-Laos-Cambodia Solidarity And Trust
In the remote northern reaches of Vietnam’s Central Highlands, a landmark not only marks the convergence of three nations but also symbolizes the e...
Others
