Economy of Laos

Laos is classified as a least developed country compared with other developing countries and relies heavily on donor assistance. significantly based on agriculture and major amount of the population has farming as their main occupation.

Lao government adopted a policy of economic liberalisation it has made progress towards a more market-based economy. Market prices are in place for most products, the currency has been floated and a fledgling private sector is growing. A Budget Law passed in February 2007 was designed to centralise and rationalise taxation. Public debt has fallen steadily from 89 per cent of GDP in 2003 to a projected 49.3 per cent in 2008. The IMF, in reporting on 30 July 2008 consultations between its Executive Board and the Lao People’s Democratic Republic, assessed that Laos economy has performed well over recent years, due to stable macroeconomic conditions as well as the rapidly growing resource sector.