Global InformationEconomy of Laos information
 | This article needs to be updated. (January 2024) |
 Vientiane | |
| Currency | Lao Kip (LAK, ₭) |
|---|---|
Fiscal year | 1 October – 30 September |
Trade organizations |
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Country group |
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| Statistics | |
| Population |  7,425,057 (2021)[3] |
| GDP |
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| GDP rank |
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GDP growth |
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GDP per capita |
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GDP per capita rank |
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GDP by sector |
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Inflation (CPI) | 40.3% (Jan 2023 est.)[6] |
Population below poverty line |
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Gini coefficient | 36.4 medium (2012)[9] |
Human Development Index |
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Labor force |
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Labor force by occupation |
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| Unemployment | 9.4% (2017)[14] |
Main industries | Copper, tin, gold, and gypsum mining; timber, electric power, agricultural processing, rubber construction, garments, cement and tourism |
| External | |
| Exports |  $3.654 billion (2017 est.)[7] |
Export goods | wood products, electricity, coffee, tin, copper, gold and cassava |
Main export partners |
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| Imports | $4.976 billion (2017 est.)[7] |
Import goods | machinery and equipment, vehicles, fuel, consumer goods |
Main import partners |
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FDI stock | $15.14 billion (31 December 2012 est.)[7] |
Current account | −$2.057 billion (2017 est.)[7] |
Gross external debt |  $17.16 billion (2020 est)[17] |
| Public finances | |
Government debt | 63.6% of GDP (2017 est.)[7] |
Budget balance | −5.5% (of GDP) (2017 est.)[7] |
| Revenues | 3.099 billion (2017 est.)[7] |
| Expenses | 4.038 billion (2017 est.)[7] |
| Economic aid | $0.4 billion (1999 est.) |
Foreign reserves | $1.27 billion (31 December 2017 est.)[7] |
Main data source: CIA World Fact Book All values, unless otherwise stated, are in US dollars. | |
The economy of Laos is a lower-middle income developing economy. Being one of the socialist states (along with China, Cuba, Vietnam, and North Korea), the Lao economic model resembles the Chinese socialist market and/or Vietnamese socialist-oriented market economies by combining high degrees of state ownership with openness to foreign direct investment and private ownership in a predominantly market-based framework.[18][19]
Following independence, Laos established a Soviet-type planned economy. As part of economic restructuring that aimed to integrate Laos into the globalized world market, the country underwent reforms called the "New Economic Mechanism" in 1986 that decentralized government control and encouraged private enterprise alongside state-owned enterprises.[20] As of 2007, Laos ranked among the fastest-growing economies in the world, averaging 8% a year in GDP growth.[21] It was forecasted that Laos would sustain at least 7% growth through 2019.[22]
The key goals for the government included pursuing poverty reduction and education for all children, with an initiative to become a "land-linked" country. This was showcased through the construction of the nearly $6 billion high-speed rail from Kunming, China to Vientiane, Laos. The country opened a stock exchange, the Lao Securities Exchange, in 2011, and has become a rising regional player in its role as a hydroelectric power supplier to its neighbors China, Thailand, and Vietnam. The Lao economy relies largely on Foreign direct investment to attract capital from overseas. The long-term goal of the Lao economy, as enshrined in the constitution, is economic development in the direction of socialism.[23]
Despite rapid growth, Laos remains one of the poorest countries in Southeast Asia.[24][25] A landlocked country, it has inadequate infrastructure and a largely unskilled work force. Nonetheless, Laos continues to attract foreign investment as it integrates with the broader ASEAN economic community, due to its plentiful, young workforce, and favorable tax environment.
Laos has significant hydropower resources; the country also has large potential for small-scale hydro- and solar power.[26] Excess electricity from hydropower is exported to other countries. Despite this, the country continues to also rely on coal in its electricity production.[27]
- ^ "World Economic Outlook Database, April 2019". IMF.org. International Monetary Fund. Retrieved 29 September 2019.
- ^ "World Bank Country and Lending Groups". datahelpdesk.worldbank.org. World Bank. Retrieved 29 September 2019.
- ^ "Population, total - Laos". Retrieved 24 December 2022.
- ^ a b "World Economic Outlook Database, October 2023". IMF.org. International Monetary Fund. Retrieved 14 October 2023.
- ^ Global Economic Prospects, June 2020. World Bank. 8 June 2020. p. 74. doi:10.1596/978-1-4648-1553-9. ISBN 978-1-4648-1553-9. Retrieved 10 June 2020.
{{cite book}}:|website=ignored (help) - ^ a b c "World Economic Outlook Database, October 2023". IMF.org. International Monetary Fund. Retrieved 14 October 2023.
- ^ a b c d e f g h i j k l "The World Factbook". CIA.gov. Central Intelligence Agency. Retrieved 19 June 2019.
- ^ "Poverty headcount ratio at $3.20 a day (2011 PPP) (% of population)". data.worldbank.org. World Bank. Retrieved 14 September 2019.
- ^ "GINI index (World Bank estimate)". data.worldbank.org. World Bank. Retrieved 19 June 2019.
- ^ "Human Development Index (HDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Inequality-adjusted Human Development Index (IHDI)". hdr.undp.org. HDRO (Human Development Report Office) United Nations Development Programme. Retrieved 11 December 2019.
- ^ "Labor force, total - Lao PDR". data.worldbank.org. World Bank. Retrieved 9 January 2020.
- ^ "Employment to population ratio, 15+, total (%) (national estimate)". data.worldbank.org. World Bank. Retrieved 14 September 2019.
- ^ "Unemployment, total (% of total labor force) (national estimate) – Lao PDR". openknowledge.worldbank.org. World Bank. Retrieved 9 January 2020.
- ^ "Export Partners of Laos". The Observatory of Economic Complexity. Retrieved 20 March 2024.
- ^ "Import Partners of Laos". The Observatory of Economic Complexity. Retrieved 20 March 2024.
- ^ "World Bank". datatopics.worldbank.org. Retrieved 21 April 2022.
- ^ "Laos - Market Overview". Export.gov. 15 July 2019. Retrieved 25 September 2019.
Laos is one of the world's five remaining communist countries. The Lao economic model bears some resemblance to its Chinese and Vietnamese counterparts, in that it has implemented market-based economic practices while maintaining a high degree of state control and welcoming foreign direct investment (FDI). Laos is politically stable.
- ^ "Chapter II: The Socio-Economic Regime" (PDF). Constitute. 2003. Retrieved 25 September 2019.
All types of enterprises are equal before the laws and operate according to the principle of the market economy, competing and cooperating with each other to expand production and business while regulated by the State in the direction of socialism.
- ^ "Laos".
- ^ "The World Factbook — Central Intelligence Agency". www.cia.gov. Archived from the original on 13 June 2007. Retrieved 11 February 2017.
- ^ "Bloomberg Briefs". newsletters.briefs.bloomberg.com. Retrieved 11 February 2017.
- ^ "Preamble" (PDF). Constitute. 2003. Retrieved 25 September 2019.
During [the years] since the country has been liberated, our people have together been implementing the two strategic tasks of defending and building the country, especially the undertaking of reforms in order to mobilise the resources in the nation to preserve the people's democratic regime and create conditions to move towards socialism.
- ^ Philip, Bruno (6 November 2012). "Laos, south-east Asia's new emerging economy". The Guardian. London.
- ^ Oliver, Chris. "Laos marks first-day trade in new exchange". MarketWatch. Retrieved 25 September 2019.
- ^ Vakulchuk, Roman; Kresnawan, Muhammad Rizki; Merdekawati, Monika; Overland, Indra; Sagbakken, Haakon Fossum; Suryadi, Beni; Yurnaidi, Zulfikar (2020). "Lao PDR: How to Attract More Investment in Small-Scale Renewable Energy?". doi:10.13140/RG.2.2.31192.72966.
{{cite journal}}: Cite journal requires|journal=(help) - ^ Overland, Indra; Sagbakken, Haakon Fossum; Chan, Hoy-Yen; Merdekawati, Monika; Suryadi, Beni; Utama, Nuki Agya; Vakulchuk, Roman (December 2021). "The ASEAN climate and energy paradox". Energy and Climate Change. 2: 100019. doi:10.1016/j.egycc.2020.100019. hdl:11250/2734506.