Laos GDP Per Capita 2022
Laos gdp per capita 2022. The country’s economic development depends heavily on exports of natural resources. The country’s economy is heavily dependent on Japan, Malaysia, Singapore, Taiwan, and Thailand. However, it has made some changes to diversify its economic base. A few years ago, Laos joined the Regional Comprehensive Economic Partnership, which is expected to benefit the country through economic integration and relocation of global value chains.
Although Laos has made some progress in the past three decades, it has faced major obstacles to economic growth and development. The country has a relatively low human development index (HDI), ranking it 137th out of 189 countries. Nevertheless, life expectancy is now greater than 67 years, the mean years of schooling increased from three to five, and the country’s GNI per capita increased from $1944 to $7413 in the past three decades, or a 281% increase.
The business environment in Laos is a challenge, however, as the World Bank has warned that the business climate isn’t improving and might worsen. In the “doing business” category of the Doing Business 2020 report, Laos ranked 181 out of 190 countries. The average process to start a business in Laos required 173 days, nine procedures, and 4.6 payments. Furthermore, up to 80% of the non-agricultural workforce works in the informal sector.
Fiscal strains have also exacerbated structural vulnerabilities in Laos’s debt profile. Public debt reached 59% of GDP in 2019 and is projected to reach 69.1% in 2022, with a large proportion of non-concessional commercial loans. China is Laos’ largest creditor, accounting for 77% of both concessional and non-concessional bilateral loans. As a result, Laos’ fiscal capacity is severely constrained, limiting its ability to implement countercyclical spending.
Laos’s government has announced a target of 4.4 percent GDP growth in the second half of 2022. This is equivalent to about 12 billion U.S. dollars per capita. The government will continue its efforts in the remaining six months of the year to achieve its target.
While Laos remains one of the poorest countries in Southeast Asia, the country has been attracting foreign investment and integrating with the larger ASEAN Economic Community. The country’s young workforce and favorable tax treatment have contributed to its emergence as a business-friendly destination. A recent World Bank report stated that poverty rates in Laos were falling rapidly and that 80 percent of the rural population was working in subsistence agriculture.
The country’s mountainous topography has long presented challenges for government jurisdiction and basic services such as transportation and communication. However, the LPRP regime has gradually improved access to such services. This is expected to benefit the population in the long run. But the political environment in Laos remains uncomfortably unstable.
Despite the challenges, Laos has shown some interest in evidence-based policymaking, a trend that is evident in its recent history. It is even publishing an online journal and conducting debates about evidence-based policies. But researchers and policymakers point to a lack of appropriate policy-making forums, vested interests, and a lack of resources. In addition, the country has also increased its investment in mining, hydropower, and commercial agriculture.
Laos is a Marxist-Leninist state with a secular government. However, religion is still a major part of everyday life. The country has a Buddhist majority, with 64.7% of the population following Theravada Buddhism. The rest of the population practices local religions. Laos’ spirit religion is also practiced.
The country’s GDP is the sum of the gross value added by all resident producers. This total is calculated by adding product taxes and subtracting subsidies. This gross value is calculated without deducting for depreciation of fabricated assets and the depletion of natural resources.
Laos GDP Per Capita 2022
The country of Laos lies in Southeast Asia and is traversed by the Mekong River. It is known for its mountainous terrain, French colonial architecture, hill tribe settlements and Buddhist monasteries. The capital city of Vientiane is home to the That Luang monument, Patuxai war memorial and Talat Sao (morning market).
GDP per capita measures the economy of a country by dividing its gross domestic product (GDP) by its total population. World Economics has recalculated Laos’s GDP by adjusting for the country’s population size, base year age and size of its informal economy. The resulting estimate is $82 billion, or $11,062 per person. This estimate is 41% higher than official figures.
While Laos’s overall GDP per capita is relatively high compared to other developing countries, the economy in Laos is still relatively undeveloped, as the country has weak property rights and communal titling. Consequently, the country’s judicial system is underdeveloped and ineffective, and it is controlled by the ruling party. This means that anticorruption efforts have had little impact on the country’s economy. Furthermore, the overall tax burden in Laos is high, at 11.4% of GDP. The government spends about 19 percent of GDP annually, while the country has an average budget deficit of 5.4 percent. In addition, public debt has reached 68.0 percent of GDP.
Laos’ inflation rate is high and has been high for several years. The government has relied on expansionary monetary policy to spur economic development. In 1989, the country’s inflation rate reached 61%. During the Asian economic crisis in 1997, it reached 90%. In 1998, the country’s inflation rate reached 128%. In Laos, the long-run relationship between money supply and output is confirmed by the country’s experience.
While Laos has made considerable progress in recent years, there is still a long way to go. The country still lacks social freedoms and unalienable rights, and its economy is only partially developed. Furthermore, Laos cannot be considered a fully developed country until the country extends freedom to all Laotians. This is a policy proposal as well as the end goal of development.
What is the GDP Per Capita 2022 of Laos?
The Lao government is aware of the need for macroeconomic stability and has been struggling to limit the country’s budgetary spending. This is despite the fact that the government has been promoting infrastructure projects that are high in cost. As a result, the country’s fiscal deficit has deteriorated to an alarming level, and the country was on the verge of defaulting on its sovereign debt. However, in recent months, the government has been making progress to correct its fiscal deficit.
Economic policy in Laos has focused on achieving greater economic growth through the development of a state-supervised economy. The government’s policy is consistent with the goal of lifting the country from LDC status by 2020. However, there is less consensus regarding the purpose of this development strategy.
Laos’ economy is heavily dependent on exports of capital-intensive natural resources. As such, its GDP composition may be over 100 percent. Laos’ GDP composition percentage includes manufacturing, but it is reported separately since it plays a critical role in many economies.
The country’s political system is undemocratic and dominated by a single party. Although the legislative assembly has become more vocal in recent years, only members of the ruling party can run for office. There are also a small number of party-approved independents. The country also recently introduced provincial People’s Councils, which elected members to the local government. The executive branch is heavily dominated by the LPRP, and ministers usually head the party committees of their ministries. The judiciary also follows party rules.
In 1975, the Lao People’s Revolutionary Party came to power in the country and introduced a Marxist-Leninist system that has had a profound impact on the country. After the armed conflict, the new government had to rebuild the country and extend state infrastructure to remote regions. In addition, the country had to survive under punitive economic sanctions.
The country’s geography has been a major structural constraint to effective governance. It is landlocked and mountainous in its north and east. Navigation down the Mekong River is hampered by waterfalls. Lack of infrastructure and communication with neighboring countries are further obstacles. In addition, natural disasters remain a regular occurrence in Laos. This year, a drought will affect mainland southeast Asia.
Historically, Laos has been a country of internal displacement and emigration. Internal displacement was the result of the Lao civil war, which lasted from 1953 to 1975. After the war, more than 300,000 Laos citizens fled to neighboring countries. While most of these refugees resettled in the United States, a smaller number went to Canada, Australia, and France.
GDP per capita is calculated using purchasing power parity, a system that converts gross domestic product into international dollars. This means that the international dollar has the same purchasing power as the U.S. dollar does over GDP in the U.S. A country’s GDP per capita is its gross value added (GDP) minus its total product taxes and subsidies. This value excludes depreciation of fabricated assets and depletion of natural resources.
Laos GDP Per Capita 2022
The Laos economy is growing at a slow pace, but the country is making steady progress. The government expects the economy to expand between 4-4.5 percent this year. On the other hand, there are some negatives. The country is experiencing a fuel crisis, which is slowing down business and private spending. However, the government is responding by cutting excise taxes on petrol.
In 2017, the country’s nominal Gross Domestic Product (GDP) was $16,853,087,485 USD, an increase of 2.5% over the previous year. It ranked 121 in a list of 196 countries. Its GDP per capita increased by only $0.4 percent.
Laos relies on Chinese investment for major infrastructure projects, such as the Vientiane expressway, which is part of the Belt and Road Initiative. However, if Laos is unable to repay its Chinese creditors, it could fall into a debt trap and have its assets seized.
Despite this, the country’s economy remains largely dependent on capital-intensive natural resource exports. In the last decade, Laos’ economy has grown at an average of 6% annually, one of the fastest in Asia. Inflation continues to rise and the local currency depreciates, which further adds to the country’s economic vulnerabilities.
The country has historically been a victim of internal displacement and emigration. Internal displacement was mainly caused by the Laos civil war (1953-1975). After the war, more than 300,000 Laotians fled to neighboring Thailand. Many of these refugees went to the US, while smaller numbers went to France, Canada, and Australia.
As of last year, Laos’ GDP per capita ranked eighth among the 10 ASEAN nations. Investment from Chinese companies is pouring in, under Beijing’s Belt and Road Initiative. In 2018, Chinese direct investment in Laos surpassed $1 billion. It has since increased the number of Chinese companies investing in real estate, railways, hydropower stations, and communication satellites.
The economy of Laos grew slowly over the past five years, but it is expected to slow down modestly in 2020. Economic freedom has also declined in Laos over the past half-decade, registering a 4.8-point decrease over that period. The country is ranked in the bottom half of countries in the world in terms of financial freedom.
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