Laos and the Limits of China-Backed Development

Laos is not simply facing a debt crisis. It is hitting the structural ceiling of a development model built on large-scale Chinese finance, where rapid infrastructure expansion has come at the expense of fiscal resilience, productive capacity and economic flexibility.

Fuel crisis drives inflation in Laos

On March 28, Laotian media outlets reported that the country is experiencing rising inflationary pressure, with prices increasing sharply during the first quarter of 2026, according to the latest report from the Ministry of Finance.