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Thailand Economy

Thailand is a newly Industrialized Country. After enjoying the world's highest growth rate from 1985 to 1995 - averaging almost 9% annually - increased pressure on Thailand's currency, the baht, in 1997 led to a crisis that uncovered financial sector weaknesses and forced the Government to float the currency. Long pegged at 25 to the US dollar, the baht reached its lowest point of 56 to the US dollar in January 1998 and the economy contracted by 10.2% that same year. The collapse prompted a wider Asian financial crisis.

Thailand entered a recovery stage in 1998, expanding 4.2% and grew 4.4% in 2000, largely due to strong exports - which increased about 20% in 2000. Growth was dampened by a softening of the global economy in 2001, but picked up in the subsequent years due to strong growth in China and the various domestic stimulation programs of Prime Minister Thaksin Shinawatra, popularly known as Thaksinomics. Growth in 2003 and 2004 was over 6% annually.

Agriculture is the primary means of employment, but industry, commerce, and services account for the 80% of the gross domestic product. Thailand is one of the world's largest producers of rice, and this accounts for much of the country's agricultural output.

Thailand exports over $105 billion worth of products annually. Major exports include rice, textiles and footwear, fishery products, rubber, jewelry, automobiles, computers and electrical appliances. Thailand is the world’s no.1 exporter of rice, exporting 6.5 million tons of milled rice annually. Rice is the most important crop in the country. Thailand has the highest percent of arable land, 27.25%, of any nation in the Greater Mekong Subregion. About 55% of the available land area is used for rice production.

Substantial industries include electric appliances, components, computer parts and automobiles, while tourism contributes about 5% of the Thai economy's GDP. Long stay foreign residents also contribute heavily to GDP.

The main natural resources of Thailand are tin, rubber, natural gas, tungsten, tantalum, timber, lead, fish, gypsum, lignite, fluorite, and arable land. Bangkok is a major centre for the cutting and trading of gemstones, as well as the production of high quality gold and silver jewellery.

Oil refineries, chemical plants, steel mills and similar industries are mainly centered around Sri Racha (30km north of Pattaya) and Mab ta Phut just east of Rayong.

Recently electronics, computers and integrated circuits, have become a major export earner and look set to play an increasing role in the future.