Since mid-1996, however, reform efforts have slowed, and the economy has suffered as a result. Because Laos depends heavily on its trade with Thailand, it was further damaged by the regional financial crisis beginning in 1997. A landlocked country with a primitive infrastructure, Laos has no railroads, a rudimentary road system, and limited external and internal telecommunications.
Electricity is available in only a few urban areas.
As in many developing countries, deforestation and soil erosion will hamper efforts to attain a high rate of GDP growth.