Laos Economy - 2022

GEOGRAPHICAL NAMES 

Economic 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.

Real GDP (purchasing power parity)

$56.79 billion (2020 est.)

$56.54 billion (2019 est.)

$53.62 billion (2018 est.)

note: data are in 2017 dollars

Real GDP growth rate

6.9% (2017 est.)

7% (2016 est.)

7.3% (2015 est.)

Real GDP per capita

$7,800 (2020 est.)

$7,900 (2019 est.)

$7,600 (2018 est.)

note: data are in 2017 dollars

GDP (official exchange rate)

$16.97 billion (2017 est.)

Inflation rate (consumer prices)

0.8% (2017 est.)

1.6% (2016 est.)

Credit ratings

Fitch rating: CCC (2020)

Moody's rating: Caa2 (2020)

note: The year refers to the year in which the current credit rating was first obtained.

GDP - composition, by sector of origin

agriculture: 20.9% (2017 est.)

industry: 33.2% (2017 est.)

services: 45.9% (2017 est.)

GDP - composition, by end use

household 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.)

Agricultural products

rice, roots/tubers nes, cassava, sugar cane, vegetables, bananas, maize, watermelons, coffee, taro

Industries

mining (copper, tin, gold, gypsum); timber, electric power, agricultural processing, rubber, construction, garments, cement, tourism

Industrial production growth rate

8% (2017 est.)

Labor force

3.582 million (2017 est.)

Labor force - by occupation

agriculture: 73.1%

industry: 6.1%

services: 20.6% (2012 est.)

Unemployment rate

0.7% (2017 est.)

0.7% (2016 est.)

Youth unemployment rate (ages 15-24)

total: 5.9%

male: 6.5%

female: 5.4% (2017 est.)

Population below poverty line

18.3% (2018 est.)

Gini Index coefficient - distribution of family income

36.4 (2012 est.)

34.6 (2002)

Household income or consumption by percentage share

lowest 10%: 3.3%

highest 10%: 30.3% (2008)

Budget

revenues: 3.099 billion (2017 est.)

expenditures: 4.038 billion (2017 est.)

Budget surplus (+) or deficit (-)

-5.5% (of GDP) (2017 est.)

Public debt

63.6% of GDP (2017 est.)

58.4% of GDP (2016 est.)

Taxes and other revenues

18.3% (of GDP) (2017 est.)

Fiscal year

1 October - 30 September

Current account balance

-$2.057 billion (2017 est.)

-$2.07 billion (2016 est.)

Exports

$6.99 billion (2019 est.) note: data are in current year dollars

$6.39 billion (2018 est.) note: data are in current year dollars

Exports - partners

Thailand 36%, China 28%, Vietnam 16% (2019)

Exports - commodities

electricity, copper, rubber, gold, flavored water (2019)

Imports

$7.52 billion (2019 est.) note: data are in current year dollars

$7.56 billion (2018 est.) note: data are in current year dollars

Imports - partners

Thailand 53%, China 26%, Vietnam 10% (2019)

Imports - commodities

refined petroleum, cars, cattle, iron structures, steel products (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 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.)

NOTE: The information regarding Laos on this page is re-published from the 2022 World Fact Book of the United States Central Intelligence Agency and other sources. No claims are made regarding the accuracy of Laos 2022 information contained here. All suggestions for corrections of any errors about Laos 2022 should be addressed to the CIA or the source cited on each page.