Laos's relative economic isolation proved beneficial during the 2008-09 global financial crisis, when the country's economy was able to continue growing rapidly. Economic growth in general, and expansion in merchandise exports in particular, will accelerate in 2011-12 in line with the global recovery, higher world agricultural and mineral prices and the development of several power projects. The main challenges for the authorities will be to keep inflationary pressures in check while maintaining support for the rapidly growing economy, and to move ahead with reforms aimed at making the business environment more conducive to private-sector activity. Foreign investment, predominantly from Asian countries and directed towards the resources sector, will increase in 2011-12. There will also be a welcome focus on infrastructure, exemplified by the construction of a US$7bn rail link between the Chinese city of Kunming and the Lao capital, Vientiane.

The government is expected to make progress on reforming Laos's foreign trade regime, with the primary objective of enabling the country to become a member of the World Trade Organisation (WTO). Laos's achievements were noted at a meeting in September 2010, when the WTO praised its progress in a number of reform areas, including tax, trade and intellectual property. Laos has signed bilateral trade agreements with China and Japan, with a condition of each being their acceptance of its membership of the WTO. Several similar agreements with other countries are being negotiated. However, there has been no formal indication of when Laos will be able to join the WTO.