Laos:
Economy

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Other pages in this profile of Laos:
Geography, People, Government, Communications & Transportation, Military & Transnational Issues.


Economy - overview	The government of Laos, one of the few remaining official Communist states, began decentralizing control and encouraging private enterprise in 1986. The results, starting from an extremely low base, were striking - growth averaged 6% per year in 1988-2006 except during the short-lived drop caused by the Asian financial crisis beginning in 1997. Despite this high growth rate, Laos remains a country with a primitive infrastructure. It has no railroads, a rudimentary road system, and limited external and internal telecommunications, though the government is sponsoring major improvements in the road system with possible support from Japan. Electricity is available in only a few urban areas. Subsistence agriculture, dominated by rice, accounts for about half of GDP and provides 80% of total employment. The economy will continue to benefit from aid by the IMF and other international sources and from new foreign investment in hydropower and mining. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. Several policy changes since 2004 may help spur growth. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to benefit from lower tariffs on exports. Laos is taking steps to join the World Trade Organization in the next few years; the resulting trade policy reforms will improve the business environment. On the fiscal side, a value-added tax (VAT) regime, slated to begin in 2008, will streamline the government's inefficient tax system.
GDP (purchasing power parity)	$13.74 billion (2006 est.)
GDP (official exchange rate)	$2.795 billion (2006 est.)
GDP - real growth rate	8.3% (2006 est.)
GDP - per capita	$2,200 (2006 est.)
GDP - composition by sector	agriculture: 42.7% industry: 31% services: 26.2% (2006 est.)
Labor force	2.1 million (2006 est.)
Labor force - by occupation	agriculture: 80% industry and services: 20% (2005 est.)
Unemployment rate	2.4% (2005 est.)
Population below poverty line	30.7% (2005 est.)
Household income or consumption by percentage share	lowest 10%: 3.4% highest 10%: 28.5% (2002)
Distribution of family income - Gini index	34.6 (2002)
Inflation rate (consumer prices)	6.8% (2006 est.)
Budget	revenues: $392.3 million expenditures: $541.3 million (2006 est.)
Agriculture - products	sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice; water buffalo, pigs, cattle, poultry
Industries	copper, tin, and gypsum mining; timber, electric power, agricultural processing, construction, garments, tourism, cement
Electricity - production	1.715 billion kWh (2005)
Electricity - consumption	1.193 billion kWh (2005)
Electricity - exports	728 million kWh (2005)
Electricity - imports	326 million kWh (2005)
Oil - production	0 bbl/day (2004 est.)
Oil - consumption	3,000 bbl/day (2004 est.)
Oil - exports	NA bbl/day
Oil - imports	NA bbl/day
Oil - proved reserves	0 bbl (1 January 2006)
Natural Gas - production	0 cu m (2005 est.)
Natural Gas - consumption	0 cu m (2005 est.)
Current account balance	$-149 million (2006 est.)
Exports	$655 million (2006 est.)
Exports - commodities	garments, wood products, coffee, electricity, tin
Exports - partners	Thailand 41%, Vietnam 9.7%, China 4.1%, Malaysia 4% (2006)
Imports	$922 million f.o.b. (2006 est.)
Imports - commodities	machinery and equipment, vehicles, fuel, consumer goods
Imports - partners	Thailand 68.8%, China 11.3%, Vietnam 5.5% (2006)
Reserves of foreign exchange and gold	$334.3 million (2006 est.)
Debt - external	$3.179 billion (2006)
Economic aid - recipient	$379 million (2006 est.)
Currency (code)	kip (LAK)
Exchange rates	kips per US dollar - 10,235 (2006), 10,820 (2005), 10,585.5 (2004), 10,569 (2003), 10,056.3 (2002)
Fiscal year	1 October - 30 September

Laos: Economy

Laos:
Economy