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Laos Economy Profile

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Economy - overview

The government of Laos, one of the few remaining one-party communist states, began decentralizing control and encouraging private enterprise in 1986. Economic growth averaged more than 6% per year in the period 1988-2008, and Laos' growth has more recently been amongst the fastest in Asia, averaging more than 7% per year for most of the last decade.

Nevertheless, Laos remains a country with an underdeveloped infrastructure, particularly in rural areas. It has a basic, but improving, road system, and limited external and internal land-line telecommunications. Electricity is available to 83% of the population. Agriculture, dominated by rice cultivation in lowland areas, accounts for about 20% of GDP and 73% of total employment. Recently, the country has faced a persistent current account deficit, falling foreign currency reserves, and growing public debt.

Laos' economy is heavily dependent on capital-intensive natural resource exports. The economy has benefited from high-profile foreign direct investment in hydropower dams along the Mekong River, copper and gold mining, logging, and construction, although some projects in these industries have drawn criticism for their environmental impacts.

Laos gained Normal Trade Relations status with the US in 2004 and applied for Generalized System of Preferences trade benefits in 2013 after being admitted to the World Trade Organization earlier in the year. Laos held the chairmanship of ASEAN in 2016. Laos is in the process of implementing a value-added tax system. The government appears committed to raising the country's profile among foreign investors and has developed special economic zones replete with generous tax incentives, but a limited labor pool, a small domestic market, and corruption remain impediments to investment. Laos also has ongoing problems with the business environment, including onerous registration requirements, a gap between legislation and implementation, and unclear or conflicting regulations.

GDP (purchasing power parity)$56.11 billion (2019 est.)

$53.616 billion (2018 est.)

$50.463 billion (2017 est.)

note: data are in 2017 dollars
GDP (official exchange rate)$16.97 billion (2017 est.)
GDP - real growth rate6.9% (2017 est.)

7% (2016 est.)

7.3% (2015 est.)
GDP - per capita (PPP)$7,826 (2019 est.)

$7,593 (2018 est.)

$7,258 (2017 est.)

note: data are in 2017 dollars
Gross national saving22.7% of GDP (2017 est.)

21.3% of GDP (2016 est.)

15.8% of GDP (2015 est.)
GDP - composition, by end usehousehold consumption: 63.7% (2017 est.)

government consumption: 14.1% (2017 est.)

investment in fixed capital: 30.9% (2017 est.)

investment in inventories: 3.1% (2017 est.)

exports of goods and services: 34.6% (2017 est.)

imports of goods and services: -43.2% (2017 est.)
GDP - composition by sectoragriculture: 20.9% (2017 est.)

industry: 33.2% (2017 est.)

services: 45.9% (2017 est.)
Ease of Doing Business Index scoresOverall score: 50.8 (2020)

Starting a Business score: 62.7 (2020)

Trading score: 78.1 (2020)

Enforcement score: 42 (2020)
Population below poverty line18.3% (2018 est.)
Labor force3.582 million (2017 est.)
Labor force - by occupationagriculture: 73.1%

industry: 6.1%

services: 20.6% (2012 est.)
Unemployment rate0.7% (2017 est.)

0.7% (2016 est.)
Unemployment, youth ages 15-24total: 18.2%

male: 20.8%

female: 15.5% (2017 est.)
Household income or consumption by percentage sharelowest 10%: 3.3%

highest 10%: 30.3% (2008)
Distribution of family income - Gini index36.4 (2012 est.)

34.6 (2002)
Budgetrevenues: 3.099 billion (2017 est.)

expenditures: 4.038 billion (2017 est.)
Taxes and other revenues18.3% (of GDP) (2017 est.)
Budget surplus (+) or deficit (-)-5.5% (of GDP) (2017 est.)
Public debt63.6% of GDP (2017 est.)

58.4% of GDP (2016 est.)
Inflation rate (consumer prices)0.8% (2017 est.)

1.6% (2016 est.)
Credit ratingsFitch rating: CCC (2020)

Moody's rating: Caa2 (2020)
Agriculture - productsrice, roots/tubers nes, cassava, sugar cane, vegetables, bananas, maize, watermelons, coffee, taro
Industriesmining (copper, tin, gold, gypsum); timber, electric power, agricultural processing, rubber, construction, garments, cement, tourism
Industrial production growth rate8% (2017 est.)
Current Account Balance-$2.057 billion (2017 est.)

-$2.07 billion (2016 est.)
Exports$3.654 billion (2017 est.)

$2.705 billion (2016 est.)
Exports - commoditieselectricity, copper, rubber, gold, flavored water (2019)
Exports - partnersThailand 36%, China 28%, Vietnam 16% (2019)
Imports$4.976 billion (2017 est.)

$4.739 billion (2016 est.)
Imports - commoditiesrefined petroleum, cars, cattle, iron structures, steel products (2019)
Imports - partnersThailand 53%, China 26%, Vietnam 10% (2019)
Reserves of foreign exchange and gold$1.27 billion (31 December 2017 est.)

$940.1 million (31 December 2016 est.)
Debt - external$14.9 billion (31 December 2017 est.)

$12.9 billion (31 December 2016 est.)
Exchange rateskips (LAK) per US dollar -

8,231.1 (2017 est.)

8,129.1 (2016 est.)

8,129.1 (2015 est.)

8,147.9 (2014 est.)

8,049 (2013 est.)
Fiscal year1 October - 30 September

Source: CIA World Factbook
This page was last updated on September 18, 2021

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