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flag Thailand Thailand: Economic and Political Outline

Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline

Economic Indicators

Thailand is Southeast Asia's second largest economy (behind Indonesia), and 4th richest nation, according to per capita GDP, after Singapore, Brunei and Malaysia. It functions as an anchor economy for the neighboring developing countries like Laos, Burma, and Cambodia. Due to its openness to foreign trade, the country was hit hard by the international financial crisis and entered into a recession in 2009 (-2.2%) for the first time since the Asian crisis of 1997-98. Estimated at 7.5%, there was a quick and dynamic growth in 2010, driven by the resumption of international trade, household incentives and investment projects (infrastructure).

With the recovery under way, the authorities will eliminate fiscal and monetary incentive measures adopted in order to combat the crisis. The country was also involved in a stimulus program called “Thailand: Investing for strength”. This program will go on until 2012, with a budget of around 30 billion euros, which should allow for the creation of about 1.5 million jobs and stimulate private consumption. Mid-term, the government is looking to strengthen infrastructure and develop the finance sector, in order to ensure a dynamic and sustainable recovery.
Significant progress has been made in terms of development: poverty has decreased sharply during the last decades. In spite of the crisis’ impact on the country, unemployment rate has remained low (1.4%).

 
Main Indicators 2009201020112012 (e)2013 (e)
GDP (billions USD) 263.71318.91339.40e379.16419.13
GDP (Constant Prices, Annual % Change) -2.47.8e3.5e4.84.8
GDP per Capita (USD) 4,1514,9925,281e5,8656,445
General Government Balance (in % of GDP) -2.1-2.3-2.3-2.9-3.5
General Government Gross Debt (in % of GDP) 45.2e44.143.043.544.5
Inflation Rate (%) -0.83.3e4.04.14.2
Unemployment Rate (% of the Labor Force) 1.51.01.21.21.2
Current Account (billions USD) 21.8714.7816.149.326.62
Current Account (in % of GDP) 8.34.64.81.6-

Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data

Note: (e) Estimated Data

Main Sectors of Industry

The Thai economy is heavily based on agriculture, which contributes around 10% of the GDP and employs almost 40% of the active population. The country is one of the leading producers and exporters of rice and also has rubber, sugar, corn, jute, cotton and tobacco as major crops. Fishing is an important activity as Thailand is a major exporter of farmed shrimp. However, agriculture's contribution to the GDP has relatively declined, while the exports of goods and services has increased.

The manufacturing sector accounts for just under half of the GDP and is well diversified. The main Thai industries are electronics, steel and automotive. Thailand is an assembly hub for international car brands. Electrical components and appliances, computers, cement production, furniture and plastic products are also important sectors. The textile sector employs around 25% of the active population but is no longer as dynamic as tourism which has become the main source of foreign exchange.

The tertiary sector, including tourism and financial services, contributes about half of the GDP.

 
Breakdown of Economic Activity By Sector Agriculture Industry Services
Employment By Sector (in % of Total Employment) 41.5 19.5 38.9
Value Added (in % of GDP) 12.4 44.7 42.9
Value Added (Annual % Change) -2.2 12.8 4.6

Source: World Bank - Last Available Data.

 
 
Monetary Indicators 20062007200820092010
Thailand Baht (THB) - Average Annual Exchange Rate For 1 USD 37.8834.5233.3134.2931.69

Source: World Bank - Last Available Data.

 
 
Learn more about Market Analysis about Thailand on Globaltrade.net, the Directory for International Trade Services.
 

Indicator of Economic Freedom

Score:
64.7/100
Position:
Moderately free
World Rank:
59/179
Regional Rank:
10/38

Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation

 

Country Risk

See the Country Risk Analysis Provided By Ducroire.

 

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Foreign Trade in Figures

Thailand is an emerging economy, very dependent on exports, which account for more than two-thirds of the GDP. Thailand is very open to international trade (trade represented on average almost 140% of the GDP in 2009) and is an active member of ASEAN. The country's three main export partners are: the United States, Japan and China. Main export commodities are electric and electronic equipment, machinery, vehicles, rubber, and plastics. The main import partners are: Japan, ASEAN, China, the EU and the United States. Thailand mainly imports electric and electronic equipment, mineral fuels and oil, machinery, iron and steel, and plastics. Thailand shows a trade surplus, a trend which should continue.

 
Foreign Trade Indicators 20062007200820092010
Imports of Goods (million USD) 128,773139,966179,225133,668182,400
Exports of Goods (million USD) 129,722153,867177,778152,422195,319
Imports of Services (million USD) 32,84138,17346,03337,54145,429
Exports of Services (million USD) 24,63630,12433,05629,67733,985
Imports of Goods and Services (Annual % Change) 3.34.48.9-21.521.5
Exports of Goods and Services (Annual % Change) 9.17.85.1-12.514.7
Imports of Goods and Services (in % of GDP) 70.265.073.957.863.9
Exports of Goods and Services (in % of GDP) 73.673.476.468.471.3
Trade Balance (million USD) 13,84426,76217,38532,69132,340
Trade Balance (Including Service) (million USD) 5,65118,6934,50424,87620,532
Foreign Trade (in % of GDP) 143.8138.5150.3126.2135.2

Source: WTO - World Trade Organization ; World Bank , Last Available Data

 

Main Partner Countries

Main Customers
(% of Exports)
2010
China 11.0%
Japan 10.5%
United States 10.4%
Hong Kong 6.7%
Malaysia 5.4%
See More Countries 56.1%
Main Suppliers
(% of Imports)
2010
Japan 20.8%
China 13.3%
United States 5.9%
Malaysia 5.9%
United Arab Emirates 4.7%
See More Countries 49.4%

Source: Comtrade, Last Available Data

 

Main Products

Main Exports
(% of Exports)
2010
Automatic data processing machines and units...Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, n.e.s. 6.7%
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 4.2%
Natural rubber, balata, gutta-percha, guayule,...Natural rubber, balata, gutta-percha, guayule, chicle and similar natural gums, in primary forms or in plates, sheets or strip 4.0%
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals (excl. crude); preparations containing >= 70% by weight of petroleum oils or of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, n.e.s.; waste oils containing mainly petroleum or bituminous minerals 4.0%
Motor cars and other motor vehicles principally...Motor cars and other motor vehicles principally designed for the transport of persons, incl. station wagons and racing cars (excl. motor vehicles of heading 8702) 3.6%
See More Products 77.5%
Main Imports
(% of Imports)
2010
Petroleum oils and oils obtained from bituminous...Petroleum oils and oils obtained from bituminous minerals, crude 13.1%
Electronic integrated circuits and microassembliesElectronic integrated circuits and microassemblies 5.9%
Gold, incl. gold plated with platinum, unwrought...Gold, incl. gold plated with platinum, unwrought or not further worked than semi-manufactured or in powder form 4.3%
Parts and accessories for tractors, motor vehicles...Parts and accessories for tractors, motor vehicles for the transport of ten or more persons, motor cars and other motor vehicles principally designed for the transport of persons, motor vehicles for the transport of goods and special purpose motor vehicles of heading 8701 to 8705, n.e.s. 2.8%
Parts and accessories (other than covers, carrying...Parts and accessories (other than covers, carrying cases and the like) suitable for use solely or principally with machines of heading 8469 to 8472, n.e.s. 2.2%
See More Products 71.7%

Source: Comtrade, Last Available Data

 
See More Products
More imports (Intracen Data)
More exports (Intracen Data)
 

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Sources of General Economic Information

Ministries
Ministry of Finance
Statistical Office
National Statistic Office
Central Bank
Bank of Thailand
Stock Exchange
The Stock Exchange of Thailand
Search Engines
Thai Info
Ped1
Sanook
Siaminside
Thaiger
Thaiseek
Thailand.com
Yailek
Economic Portals
Thai Chamber of Commerce

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Political Outline

Executive Power
Governed by a constitutional monarchy, Thailand has a bicameral legislature system with a House of Representatives and a Senate. Thailand’s 76 provinces each administered by an appointed Governor are divided into districts, sub-districts (tambons) and villages.
The King is the chief of the state and the monarch is hereditary. he has little direct power but commands enormous popular respect and moral authority which he has used on occasion to resolve political crises that have threatened national stability. Following national elections for the lower house of the parliament, the leader of the party that can organize a majority coalition is appointed as Prime Minister by the King for a four-year term. Prime Minister is the head of the government and holds all the executive powers including implementation of the law in the country and running the day-to-day affairs. The cabinet is appointed by the King on recommendation of the Prime Minister.
Legislative Power
The legislature in Thailand is bicameral. The parliament called National Assembly consists of: Senate (the upper house) having 200 seats with its members elected by popular vote to serve six-year terms and the House of Representatives (the lower house) having 500 seats with its members elected by popular vote to serve four-year terms. The executive branch of government is directly or indirectly dependent on the support of the parliament, often expressed through a vote of confidence. Government cannot veto the acts passed by the parliament. When not under military rule, the people of Thailand enjoy considerable political rights. The coup of September 2006 has taken place after 15 years of civilian and democratically-elected governments. The 2006 interim constitution was later surpassed by the permanent constitution on 24 August 2007. Martial law was partially revoked in January 2007. The ban on political activities was lifted in July 2007 following the 30 May dissolution of the Thai Rak Thai party. The new constitution has been approved by a referendum on 19 August, which led to a return to democratic elections on 23 December 2007.
Main Political Parties
Thailand has a multi-party system. The major political parties in the country are:
- TRT (Thai Rak Thai Party) – has no clear ideological platform, but is commonly described as a ‘populist’ party;
- DP (Democratic Party) – the oldest party in the country, opposes any kind of military dictatorship, pro-democracy;
- TNP (Thai Nation Party) – a conservative nationalist party;
- Great People's Party – advocates left-wing ideology.
Current Political Leaders
King: Bhumibol Adulyadej (since June 1946) – hereditary
Prime Minister: YINGLAK Chinnawat, also spelled YINGLUCK Shinawatra (since 8 August 2011) - Pheu Thai Party.
Next Election Dates
Senate: April 2012
House of Representatives: Year 2015
 

Indicator of Freedom of the Press

World Rank:
153/178
Evolution:
23 places down compared to 2009

Source: Worldwide Press Freedom Index 2010, Reporters Without Borders

 

Indicator of Political Freedom

Ranking:
Partly Free
Political Freedom:
5/7
Civil Liberties:
4/7

Map of freedom 2010
Source: Freedom House

 

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Last Updates: January 2012