Analysis
Laos, in the hope of expanding exports and attracting tourists, built the joint venture Laos-China Railway with China, its most important export market and trading partner.
The construction took five years and the railway officially opened at the end of 2021. But as China’s economy currently appears to stall, Laos finds itself in a position where it may have to repay its debt from the railway construction with its natural resources.
The World Bank’s June China Economics Update forecasts China’s real GDP growth to slow to 4.3 percent in 2022, which means China’s import demand will fall, a further blow to Lao’s already fragile economic situation….