World Business | Asia | Asia Business | Laos

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% in 1988-2004 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. The government has sponsored major improvements in the road system. Electricity is available in only a few urban areas. Subsistence agriculture accounts for half of GDP and provides 80% of total employment. The economy will continue to benefit from aid from the IMF and other international sources and from new foreign investment in food processing and mining. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to face lower tariffs on their exports; this may help spur growth.
 

Agriculture - Products
sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice, water buffalo, pigs, cattle, poultry

Airlines
Airlines in Asia
Airlines Worldwide

Airports
Airports in Asia
Airports Worldwide

Country Budget
revenues: $284.3 million
expenditures: $416.5 million, including capital expenditures of NA (2004 est.)

Currency (code): kip (LAK)

Currency Exchange Rates
kips per US dollar - 10,820 (2004), 10,569 (2003), 10,056.3 (2002), 8,954.6 (2001), 7,887.6 (2000)

Fiscal Year: 1 October - 30 September

GDP (Gross Domestic Product)
GDP (purchasing power parity):  $11.28 billion (2004 est.)
GDP - real growth rate:  6% (2004 est.)
GDP - per capita:  purchasing power parity - $1,900 (2004 est.)
GDP - composition by sector:
agriculture: 49.5%
industry: 27.5%
services: 23% (2004 est.)

Imports / Exports
Exports:  $365.5 million (2004 est.)
Exports - commodities: garments, wood products, coffee, electricity, tin
Exports - partners: Thailand 19.3%, Vietnam 13.4%, France 8%, Germany 5.3%, UK 5% (2004)

Imports: $579.5 million f.o.b. (2004 est.)
Imports - commodities: machinery and equipment, vehicles, fuel, consumer goods
Imports - partners: Thailand 60.5%, China 10.3%, Vietnam 7.1%, Singapore 4% (2004)

Industries
tin and gypsum mining, timber, electric power, agricultural processing, construction, garments, tourism

Investing
Forex, Foreign Exchange Market: Currency Trading

Labor Force & Unemployment Rate
Labor force:  2.6 million (2001 est.)
Labor force - by occupation:  agriculture 80% (1997 est.)
Unemployment rate:  5.7% (1997 est.)