The Economy of Thailand

For almost a decade, Thailand has one of the world’s highest growth rates. From 1985 to 1996, it has an average of 9% growth. Its currency, the baht, reached 25 against the US dollar just before the Asian financial crisis. Its economy bounced back in 1999 due to its strong exports that further improved in 2000. Thailand has the second largest economy in the Southeast Asian region next to Indonesia. It also ranks 4th richest nation per capita in the said region next to Singapore, Brunei and Malaysia.

Exports play a vital in Thailand’s economy. In 2006, its exports reached almost $124 billion accounting almost 60% of its GDP. The U.S. and Japan remain its key trading partners along with China, Singapore, Hong Kong, and Malaysia. Major industries include automobiles and automotive parts, financial services, electronic components, tourism, furniture, textiles, agricultural processing, beverages and tobacco.

As of 2006, the manufacturing sector contributes about 45% to Thailand’s economy. The nation is becoming a hub for the automobile industry in the ASEAN region with approximately 900,000 units manufactured in 2004. Two main automakers in Thailand are Toyota and Ford. Service is also another key sector with a value of 45.2% of the GDP and employs 38% of the nation’s workforce. The agricultural sector, which also includes fishing and forestry, produces roughly 10% of nation’s GDP. Thailand remains the world’s biggest exporter of rice. Other key products include shrimps, coconuts, rubber, corn, sugarcane and tapioca.