Because Laos depends heavily on its trade with Thailand, it fell victim to the financial crisis in the region beginning in 1997. Laos is a landlocked country with a primitive infrastructure. It has no railroads, a rudimentary road system, and limited external and internal telecommunications.
Electricity is available in only a few urban areas.
The predominant crop is glutinous rice. As in many developing countries, deforestation and soil erosion will hamper efforts to regain a high rate of GDP growth.