Laos: Capital investment, percent of GDP

The latest value from 2016 is 29.01 percent, a decline from 31.56 percent in 2015. In comparison, the world average is 24.44 percent, based on data from 166 countries. Historically, the average for Laos from 1984 to 2016 is 24.11 percent. The minimum value, 6.18 percent, was reached in 1984 while the maximum of 34.06 percent was recorded in 2005. See the global rankings for that indicator or use the country comparator to compare trends over time.

The capital investment in Laos and other countries is calculated as the purchases of new plant and equipment by firms, as percent of GDP. A high number is good for long-term economic growth as current investment leads to greater future production.

Definition: Gross capital formation (formerly gross domestic investment) consists of outlays on additions to the fixed assets of the economy plus net changes in the level of inventories. Fixed assets include land improvements (fences, ditches, drains, and so on); plant, machinery, and equipment purchases; and the construction of roads, railways, and the like, including schools, offices, hospitals, private residential dwellings, and commercial and industrial buildings. Inventories are stocks of goods held by firms to meet temporary or unexpected fluctuations in production or sales, and "work in progress." According to the 1993 SNA, net acquisitions of valuables are also considered capital formation.