by Zsombor Peter
Voice of America
BANGKOK —
Laos is straining under soaring inflation rates made worse by the stress of massive loans owed mostly to China for a series of megaprojects that have yet to pay off.
The tiny landlocked nation of nearly 8 million has already deferred some payments. But economists and analysts say Beijing may start asking for a stake in Laotian land, resources and infrastructure as compensation, which could expand China’s influence in the neighboring country.
Rising prices
Laos’ inflation rate jumped from the low single digits to 23% in 2022 and another 31% last year, the highest in all of Asia, according to the Asian Development Bank, or ADB. The regional development bank expects inflation to stay above 20% through 2025.