National Debt (% of GDP): Lao P.D.R.

Analysis# Lao P.D.R. National Debt (% of GDP) Lao P.D.R.'s national debt stands at 84.7% of GDP in 2026, down sharply from its catastrophic peak of 130.7% in 2022. Since 2001, the country has reduced debt levels by 10.6 percentage points overall, though the recent spike reveals significant fiscal stress. The all-time low of 43% in 2011 underscores how dramatically the debt burden has grown over the past 15 years. A sharp acceleration occurred between 2017 and 2022, when debt surged from 57.2% to 130.7%—a 73.5-point increase reflecting severe economic pressures and borrowing needs. The trajectory reversed decisively after 2022, declining 46 percentage points through 2026. If this downward momentum continues, Lao P.D.R. could approach the 70% threshold within three years, signaling meaningful progress in fiscal consolidation.