Laos’s economic freedom score is 51.4, making its economy the 150th freest in the 2015 Index. Its overall score is 0.2 point higher than last year, reflecting improvements in freedom from corruption and labor freedom that outweigh declines in investment freedom, business freedom, and monetary freedom. Laos is ranked 33rd out of 42 countries in the Asia–Pacific region, and its overall score is below the world and regional averages.
Economic freedom in Laos has scarcely budged over the past five years, highlighting the apparent lack of commitment to economic reform in the East Asian economy. While the country did register its highest score ever in the 2015 Index, progress has been inconsequential. Five-year improvements in half of the 10 economic freedoms, including the control of government spending and labor freedom, have been counterbalanced by deteriorations in property rights, government spending, monetary freedom, and trade freedom.
Laos remains largely absent from the East Asian trading network, and its trade freedom remains well below the global average. Government corruption is widespread, and the judiciary is largely ineffective. Businesses, especially entrepreneurs, find that business formation and capital accumulation are difficult because of regulatory costs and underdeveloped financial markets