ientiane
mailing address: American Embassy, Box V, APO AP 96546
telephone: [856] (21) 212581, 212582, 212585
FAX: [856] (21) 212584

Flag description:
three horizontal bands of red (top), blue (double width), and red
with a large white disk centered in the blue band

Economy 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.

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.)

Labor force:
2.6 million (2001 est.)

Labor force - by occupation:
agriculture 80% (1997 est.)

Unemployment rate:
5.7% (1997 est.)

Population below poverty line:
40% (2002 est.)

Household income or consumption by percentage share:
lowest 10%: 3.2%
highest 10%: 30.6% (1997)

Distribution of family income - Gini index:
37 (1997)

Inflation rate (consumer prices):
12.3% (2004 est.)

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

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

Industries:
tin and gypsum mining, timber, electric power, agricultural