Commodities - Laos

Laos

The nominal value in the Commodities market is projected to reach US$27.79bn in 2024.
It is expected to show an annual growth rate (CAGR 2024-2029) of 4.62% resulting in a projected total amount of US$34.83bn by 2029.
The average price per contract in the Commodities market amounts to US$0.08 in 2024.
From a global comparison perspective it is shown that the highest nominal value is reached in the United States (US$53,690.00bn in 2024).
In the Commodities market, the number of contracts is expected to amount to 367.20k by 2029.

Market

Region

Region comparison

Currency

Analyst Opinion

The Commodities market in Laos is experiencing a shift in customer preferences, market trends, and local special circumstances.

Customer preferences: Laotian investors are increasingly showing interest in investing in commodities as a way to diversify their portfolios and hedge against market volatility. This shift in preference can be attributed to the potential for higher returns compared to traditional investment options.

Trends in the market: One noticeable trend in the Laos Commodities market is the growing popularity of commodity trading among retail investors. This trend is driven by the increasing accessibility of online trading platforms, which allow investors to participate in the market with ease. Additionally, the market is seeing a rise in demand for commodities such as gold and oil, reflecting global market trends.

Local special circumstances: Laos' strategic location in Southeast Asia and its growing economy are contributing to the development of its Commodities market. The government's efforts to promote foreign investment and improve infrastructure are creating a conducive environment for market growth. Moreover, the country's rich natural resources play a significant role in shaping the Commodities market landscape.

Underlying macroeconomic factors: The steady economic growth in Laos, coupled with stable political conditions, is bolstering investor confidence in the Commodities market. As the country continues to attract foreign investment and diversify its economy, the Commodities market is poised for further development. Additionally, the increasing integration of Laos into the global economy is opening up new opportunities for commodity trading in the region.

Methodology

Data coverage:

Figures are based on commodity derivatives, their notional value, the number of contracts traded, the open interest (outstanding contracts at the end of a year), and the average value of a contract.

Modeling approach / Market size:

Market sizes are determined by a Bottom-Up approach, based on a specific rationale for each market segment. As a basis for evaluating markets, we use market research & analysis, and data of World Bank, as well as the World Federation of Exchanges. Furthermore, we use relevant key market indicators and data from country-specific associations and national data bureaus such as GDP, wealth per capita, and the online banking penetration rate. This data helps us to estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the particular market. In this market, we use the HOLT-damped Trend method to forecast future development. The main drivers are GDP per capita an the online banking penetration rate.

Additional Notes:

The market is updated twice per year in case market dynamics change.