Country Summary: Laos (Lao People’s Democratic Republic)
Country Name: Laos (Lao People’s Democratic Republic)
Capital: Vientiane (Viangchan)
Government Type: communist state
Background: Modern-day Laos has its roots in the ancient Lao kingdom of Lan Xang, established in the 14th century under King FA NGUM. For 300 years Lan Xang had influence reaching into present-day Cambodia and Thailand, as well as over all of what is now Laos. After centuries of gradual decline, Laos came under the domination of Siam (Thailand) from the late 18th century until the late 19th century, when it became part of French Indochina. The Franco-Siamese Treaty of 1907 defined the current Lao border with Thailand. In 1975, the communist Pathet Lao took control of the government, ending a six-century-old monarchy and instituting a strict socialist regime closely aligned to Vietnam. A gradual, limited return to private enterprise and the liberalization of foreign investment laws began in 1988. Laos became a member of ASEAN in 1997 and the WTO in 2013.
In the 2010s, the country benefited from direct foreign investment, particularly in the natural resource and industry sectors. Construction of a number of large hydropower dams and expanding mining activities have also boosted the economy. Laos has retained its official commitment to communism and maintains close ties with its two communist neighbors, Vietnam and China, both of which continue to exert substantial political and economic influence on the country. China, for example, provided 70% of the funding for a $5.9 billion, 400-km railway line between the Chinese border and the capital Vientiane, which opened for operations in December 2021. Laos financed the remaining 30% with loans from China. At the same time, Laos has expanded its economic reliance on the West and other Asian countries, such as Japan, Malaysia, Singapore, Taiwan, and Thailand. In 2023, Lao households faced the highest inflation in almost a quarter century, with year-on-year inflation reaching 40% early in the year.
Continent: Asia
Population: 7,852,377 (2023 est.)
Ethnic Groups: Lao 53.2%, Khmou 11%, Hmong 9.2%, Phouthay 3.4%, Tai 3.1%, Makong 2.5%, Katong 2.2%, Lue 2%, Akha 1.8%, other 11.6% (2015 est.)
Languages: Lao (official), French, English, various ethnic languages
Religions: Buddhist 64.7%, Christian 1.7%, none 31.4%, other/not stated 2.1% (2015 est.)
Economic Overview: lower middle-income, socialist Southeast Asian economy; one of the fastest growing economies; declining but still high poverty; natural resource rich; new anticorruption efforts; already high and growing public debt; service sector hit hard by COVID-19
Currency: Lao Kip (LAK)
Reserves of Foreign Exchange & Gold: $1.216 billion (2022 est.) note: holdings of gold (year-end prices)/foreign exchange/special drawing rights in current dollars
Real GDP (Purchasing Power Parity): $59.842 billion (2022 est.) note: data in 2017 dollars
Real GDP Growth Rate: 2.71% (2022 est.) note: annual GDP % growth based on constant local currency
Real GDP per Capita: $7,900 (2022 est.) note: data in 2017 dollars
Exports:
$8.604 billion (2022 est.) note: balance of payments - exports of goods and services in current dollars
Comparison Ranking: 120
Export Commodities: electricity, gold, paper, copper, rubber, flavored water (2021)
Export Partners: Thailand 33%, China 27%, Vietnam 13%, Australia 8%, Switzerland 3% (2021)
Imports:
$7.772 billion (2022 est.) note: balance of payments - imports of goods and services in current dollars
Comparison Ranking: 130
Import Commodities: refined petroleum, cars, cattle, iron structures, steel products (2019)
Import Partners: Thailand 53%, China 26%, Vietnam 10% (2019)
Natural Resources: timber, hydropower, gypsum, tin, gold, gemstones
Agricultural Products: rice, roots/tubers nes, cassava, sugar cane, vegetables, bananas, maize, watermelons, coffee, taro
Industries: mining (copper, tin, gold, gypsum); timber, electric power, agricultural processing, rubber, construction, garments, cement, tourism
Industrial Production Growth Rate:
3.34% (2022 est.) note: annual % change in industrial value added based on constant local currency
Comparison Ranking: 106
Labor Force: 3.106 million (2022 est.)
Unemployment Rate: 3.82% (2022 est.) note: % of labor force seeking employment
Natural Hazards: floods, droughts
Geography:
Total: 236,800 sq km
Land: 230,800 sq km
Water: 6,000 sq km
(Country Summary, The World Factbook, CIA.gov)
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