In 2016, growth dipped a little and this trend is expected to continue in 2017. Activity will, however, remain very dynamic. The Laotian economy should benefit from the slight recovery in commodity prices, primarily those of mining products. Meanwhile, construction will profit from momentum in the hydroelectric sector. 35 power plants are under construction, while several projects were launched at the end of 2016. Meanwhile, despite fiscal consolidation measures, infrastructure development is continuing. The country, which is confronted by major infrastructure shortcomings, is involved in projects aimed at improving its rail connections with Thailand and China. In addition, a fifth airport is to be built and the country is expanding its hotel capacity. Accordingly, the number of tourist visitors, especially from China, is expected to remain high. The tourist source countries will continue to be highly concentrated with 80% of tourists coming from Thailand, China or Vietnam. The agricultural sector - under-modernised - will continue to dominate: it represents 25% of GDP and employs over 70% of the economically active population.

Despite the growth in exports of electricity and mining products, the current account deficit is still huge. This is because the country imports almost twice as much as it exports. Imports mainly consist of oil products and capital goods, destined, in particular, for the hydroelectric sector. Nonetheless, in 2017, the trade deficit is expected to narrow, thanks chiefly to the slight expected increase in prices for mining products and the recovery of the Thai economy. At the same time, tourism growth should help to offset dividend repatriations by foreign companies engaged in the exploitation of natural resources. The country also receives expatriate workers' remittances and foreign aid. Accordingly, it should manage to slightly reduce the level of its current account deficit.

The presence of a single party, the communist-inspired Lao People's Revolutionary Party (PPRL), ensures the country's political stability. In April 2016, the transition of power to a new leadership team led by Thongloun Sisoulith ensured continuity. However, the country remains underdeveloped, despite the strong economic growth observed in recent years. This situation is explained by the advent of an economy strongly oriented towards the external market and favouring FDIs (which enabled the country to join the WTO), which, however, offers little benefit to the population. Meanwhile, despite some progress, notable on financial data, there are significant governance shortcomings, as evidenced by the high level of corruption.