• The Lao PDR economy continues to grow at 8 percent this year despite the impact of typhoons Haima and Nock Ten and slower growth in the global economy. This growth is driven mainly by hydropower, manufacturing and services sectors. The mining sector’s contribution to growth in 2011 is expected to slow according to company production plans and actual outputs in the first 3 quarters of this year.
  
  
• The manufacturing sector is projected to grow at 15 percent. It is driven by garment, construction materials, and food and beverage production.
  
  
• The European Union has started relaxing material-sourcing regulations for least developing countries and this is benefitting Lao PDR's garment industry. In 2011, the garment industry has also began shifting production towards higher value-added products.
  
  
• The services sector is benefiting from higher domestic demand, particularly for wholesale, retail trading and telecommunications.
  
  
• Lao PDR's fiscal deficit was reduced significantly due to large public revenues from mining and hydropower flowing into the fiscal accounts.
  
  
• Net foreign assets and foreign exchange reserves accumulated as of June 2011 as a result of buoyant economic activities and a stabilized exchange rate policy
  

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