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Lao PDR Government Spending

Government expenditure as % of GDP  GC.XPN.TOTL.GD.ZS

Lao PDR's government spending was 8.62% in 2025, ranked 110th globally. This represents a 16.4% decrease from 2024. Data from World Bank, covering 2008–2025.

8.62% −1.70% (-16.4%)
Year 2025 Rank #110 Global Peak 16.81% (2013) Source World Bank

Lao PDR Government Spending (2008–2025)

Overview

Lao PDR's government spending stood at 8.62% in 2025, a decline of +1.70% from 2022. Based on recent trends, this figure is projected to reach 8.62% by 2025. Lao PDR ranked 110th globally.

Lao PDR’s government spending as a share of GDP has fallen sharply over the 16‑year series, slipping from a high of 16.81 percent in 2013 to a trough of 8.62 percent in 2025, the lowest level recorded in the dataset and ranking the country 110th globally. The decline represents a contraction of more than half of the 2013 peak and a reduction of 2.16 percentage points from the earliest observation in 2008, when spending stood at 10.78 percent. By contrast, peer Madagascar still allocates 10.81 percent of GDP to the public sector, while the United Arab Emirates records a markedly lower 3.42 percent, underscoring the divergent fiscal approaches within the region. The sustained downward trajectory suggests that without a reversal in fiscal policy or a resurgence in revenue capacity, Lao PDR’s government spending share is likely to remain near the 2025 trough in the near term.

Data & projection

Year Government Spending YoY change Rank
2025* trend 8.62% - -
2025 8.62% −1.70% #110
2022 10.32% −0.45% #3
2021 10.76% −0.68% #7
2020 11.45% −1.00% #5
2019 12.45% +0.14% #11
2018 12.31% −0.03% #14
2017 12.34% −1.53% #14
2016 13.87% −1.02% #19
2015 14.89% −0.59% #23
2014 15.49% −1.33% #29
2013 16.81% +5.83% #32
2012 10.98% +0.24% #10
2011 10.74% −0.28% #9
2010 11.03% −0.49% #11
2009 11.52% +0.73% #11
Show all years (2008-2025)
* Linear trend extrapolation

Detected Pattern

Export Boom Cycle
Current account surplus with strong export growth (>15% YoY), reserve accumulation, and moderate GDP growth. Typical of commodity exporters during price surges.
Reserves YoY +12.3% GDP growth 3.7% C/A balance 2.6%
Occurred 768 times, 546 successful
Reserves YoY
+25.6%
GDP growth
4.0%
C/A balance
14.5%
Reserves YoY
+14.6%
GDP growth
3.7%
C/A balance
2.9%
Reserves YoY
+12.8%
GDP growth
43.8%
C/A balance
16.4%
Reserves YoY
+12.6%
GDP growth
6.0%
C/A balance
0.5%
Reserves YoY
+38.3%
GDP growth
5.0%
C/A balance
1.2%
Reserves YoY
+18.0%
GDP growth
2.9%
C/A balance
3.9%

Analysis

Lao PDR matched the Export Boom Cycle pattern in 2023. Historically, 71% of countries showing this pattern (546 out of 768) saw government spending improve within 24 months. View full analysis →

Frequently Asked Questions

What is Lao PDR's government spending?▾

Lao PDR's government spending was 8.62% in 2025. Ranked 110th globally. This represents a 16.4% decrease from the previous year.

What was the highest government spending in Lao PDR?▾

Lao PDR's government spending peaked at 16.81% in 2013.

What was the lowest government spending in Lao PDR?▾

The lowest government spending in Lao PDR was 8.62% in 2025.

How does Lao PDR rank in government spending?▾

Lao PDR ranks 110th globally in government spending as of 2025.

What is the World Bank indicator code for government spending?▾

The World Bank indicator code is GC.XPN.TOTL.GD.ZS. Data sourced from World Bank.

What is the projected government spending of Lao PDR in 2025?▾

Lao PDR's government spending is projected to reach 8.62% by 2025 based on trend extrapolation.

What is the government spending of Lao PDR in 2025?▾

The government spending of Lao PDR in 2025 was 8.62%. This ranks 110th in the world.

Cite this page

APA
Lao PDR Government Spending. HistorySaid. Retrieved October 31, 2026, from https://historysaid.com/lao-pdr/government-spending/
BibTeX
@misc{historysaid_lao-pdr_government-spending, title = {Lao PDR Government Spending}, url = {https://historysaid.com/lao-pdr/government-spending/}, publisher = {HistorySaid}, year = {2026} }
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