External Sector

Balance of Payment and International Reserves

Merchandise trade

The growth of merchandise exports continued to outpace the growth of merchandise imports m 1993. Exports increase by a hefty 57.9% from $132.6 million in 1992 to $209.4 million in 1993. Imports grew by 48.4% from $253.0 to $375.4 for the same period. However, because exports have been growing from a much lower base, the trade deficit still expanded from % 210.4 million in 1992 to $166.0 million in 1993 representing an increase of 3 7.9%. In terms of proportion , exports continues to be just over one half ( 5 6/.) imports.

Figure 1.9 Foreign Trade, 1988-1993 ( In Per Cant GDP )

Wood products continued to be the top export of the Lao PDR in 1993, earning $3 8.2 million for the country. Together with logs exports of $8.5 million, they represent 46.7% of total merchandise export earning. The other major exports were ; garments textiles 37.0 million; motorbike assembly- $22.0 million and electricity-$19.6 million. It will be recalled that in 1990 electricity was the top export earner.