| 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, 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 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. Construction will be another strong economic driver, especially as hydroelectric dam and road projects gain steam. In late 2004, Laos gained Normal Trade Relations status with the US, allowing Laos-based producers to face lower tariffs on exports. This may help spur growth. In addition, the European Union has agreed to provide $1 million to the Lao government for technical assistance in preparations for WTO membership. If the avian flu worsens and spreads in the region, however, prospects for tourism could dim. |
| GDP - per capita | $1,900 (2005 est.) |
| GDP - real growth rate (%) | 7.2% (2005 est.) |
| Agriculture - products | sweet potatoes, vegetables, corn, coffee, sugarcane, tobacco, cotton, tea, peanuts, rice, water buffalo, pigs, cattle, poultry |
| GDP - composition by sector (%) | agriculture: 48.6%, industry: 25.9%, services: 25.5% (2005 est.) |
| Industries | copper, tin, and gypsum mining, timber, electric power, agricultural processing, construction, garments, tourism, cement |
| Economic aid - recipient | $243 million (2001 est.) |
| Debt - external | $2.49 billion (2001) |
| Population below poverty line (%) | 40% (2002 est.) |
| Labor force - by occupation (%) | agriculture 80% (1997 est.) |
Environment, Land use / Resources, Economy, Population / Demographics, Infrastructure, Health -- CIA World Factbook, 2005
