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):
$49.21 billion (2017 est.)
$46.03 billion (2016 est.)
$43.01 billion (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 111
GDP (official exchange rate):
$17.15 billion (2017 est.)
GDP - real growth rate:
6.9% (2017 est.)
7% (2016 est.)
7.3% (2015 est.)
country comparison to the world: 11
GDP - per capita (PPP):
$7,400 (2017 est.)
$7,000 (2016 est.)
$6,600 (2015 est.)
note: data are in 2017 dollars
country comparison to the world: 155
Gross national saving:
18% of GDP (2017 est.)
14.8% of GDP (2016 est.)
14.5% of GDP (2015 est.)
country comparison to the world: 101
GDP - composition, by end use:
household consumption: 62.6%
government consumption: 13.4%
investment in fixed capital: 36%
investment in inventories: 3.1%
exports of goods and services: 35.7%
imports of goods and services: -50.8% (2017 est.)
GDP - composition, by sector of origin:
agriculture: 20.9%
industry: 33.2%
services: 39.1% (2017 est.)
Agriculture - products:
sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; cassava (manioc, tapioca), water buffalo, pigs, cattle, poultry
Industries:
mining (copper, tin, gold, gypsum); timber, electric power, agricultural processing, rubber, construction, garments, cement, tourism
Industrial production growth rate:
8% (2017 est.)
country comparison to the world: 19
Labor force:
3.582 million (2017 est.)
country comparison to the world: 101
Labor force - by occupation:
agriculture: 73.1%
industry: 6.1%
services: 20.6% (2012 est.)
Unemployment rate:
1.5% (2016 est.)
1.5% (2016 est.)
country comparison to the world: 10
Population below poverty line:
22% (2013 est.)
Household income or consumption by percentage share:
lowest 10%: 3.3%
highest 10%: 30.3% (2008 est.)
Distribution of family income - Gini index:
36.7 (2008 est.)
34.6 (2002 est.)
country comparison to the world: 89
Budget:
revenues: $3.144 billion
expenditures: $4.098 billion (2017 est.)
Taxes and other revenues:
18.3% of GDP (2017 est.)
country comparison to the world: 165
Budget surplus (+) or deficit (-):
-5.6% of GDP (2017 est.)
country comparison to the world: 171
Public debt:
67.3% of GDP (2016 est.)
65.6% of GDP (2015 est.)
country comparison to the world: 55
Fiscal year:
1 October - 30 September
Inflation rate (consumer prices):
2.3% (2017 est.)
2% (2016 est.)
country comparison to the world: 109
Central bank discount rate:
4.3% (31 December 2010 est.)
4% (31 December 2009 est.)
country comparison to the world: 85
Commercial bank prime lending rate:
18.5% (31 December 2017 est.)
18% (31 December 2016 est.)
country comparison to the world: 23
Stock of narrow money:
$1.303 billion (31 December 2017 est.)
$1.243 billion (31 December 2016 est.)
country comparison to the world: 149
Stock of broad money:
$9.193 billion (31 December 2017 est.)
$8.197 billion (31 December 2016 est.)
country comparison to the world: 109
Stock of domestic credit:
$9.52 billion (31 December 2017 est.)
$8.381 billion (31 December 2016 est.)
country comparison to the world: 110
Market value of publicly traded shares:
$1.012 billion (2012 est.)
$576.8 million (2011 est.)
country comparison to the world: 106
Current account balance:
$-1.653 billion (2017 est.)
$-1.678 billion (2016 est.)
country comparison to the world: 151
Exports:
$2.881 billion (2017 est.)
$2.705 billion (2016 est.)
country comparison to the world: 129
Exports - commodities:
wood products, coffee, electricity, tin, copper, gold, cassava
Exports - partners:
Thailand 40.1%, China 28.5%, Vietnam 13.7% (2016)
Imports:
$5.852 billion (2017 est.)
$5.547 billion (2016 est.)
country comparison to the world: 116
Imports - commodities:
machinery and equipment, vehicles, fuel, consumer goods
Imports - partners:
Thailand 64.6%, China 16.5%, Vietnam 9.4% (2016)
Reserves of foreign exchange and gold:
$989.8 million (31 December 2017 est.)
$940.1 million (31 December 2016 est.)
country comparison to the world: 125
Debt - external:
$13.64 billion (31 December 2017 est.)
$12.9 billion (31 December 2016 est.)
country comparison to the world: 106
Stock of direct foreign investment - at home:
$15.14 billion (31 December 2012 est.)
$12.44 billion (31 December 2011 est.)
country comparison to the world: 90
Exchange rates:
kips (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.)