In 2023, Laos is facing a new set of economic challenges attributed to the global surge in fuel prices, the devaluation of the Lao Kip, and rising inflation. As of April 2023, inflation increased significantly, primarily driven by the devaluation of the Kip against the Thai Baht and the US Dollar.
Inflation has been negatively impacting Laos in 2023, leading to cutbacks in food consumption, education, and healthcare. This, in turn, has contributed to a rise in poverty rates, accompanied by a noticeable decline in household consumption rates.
There are generally three main meals in a single day: breakfast, lunch and dinner. For breakfast, baguette sandwiches are popular, with khao jie pate sandwiches being filled with salad and pork pate.
Household incomes have been adversely affected by inflation in 2023. Although the proportion of households reporting income losses decreased from May to December 2022, a significant number, nearly two-thirds of workers, experienced stagnant or declining incomes due to the escalating costs of living during this period.
The reopening of borders and the Lao-China railway operation have boosted cross-country trading, post pandemic. However, poor road infrastructure, especially during the flooding season from mid-July to early September, hinders distribution.
Staple foods is unlikely to register a dynamic and robust performance over the forecast period, with the majority of consumers living in most parts of the country likely to continue relying on unpackaged staples, notably rice, noodles and bread, as well as fresh food to meet most of their daily nutrition needs.
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Staple Foods
NOTE: Couscous, polenta and quinoa are excluded from staple foods.
See All of Our DefinitionsThis report originates from Passport, our Staple Foods research and analysis database.
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