Thailand: Economic and Political Outline
Economic Indicators | Foreign Trade in Figures | Sources of General Economic Information | Political Outline
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 | 2009 | 2010 | 2011 | 2012 (e) | 2013 (e) |
| GDP (billions USD) | 263.71 | 318.91 | 339.40e | 379.16 | 419.13 |
| GDP (Constant Prices, Annual % Change) | -2.4 | 7.8e | 3.5e | 4.8 | 4.8 |
| GDP per Capita (USD) | 4,151 | 4,992 | 5,281e | 5,865 | 6,445 |
| General Government Balance (in % of GDP) | -2.1 | -2.3 | -2.3 | -2.9 | -3.5 |
| General Government Gross Debt (in % of GDP) | 45.2e | 44.1 | 43.0 | 43.5 | 44.5 |
| Inflation Rate (%) | -0.8 | 3.3e | 4.0 | 4.1 | 4.2 |
| Unemployment Rate (% of the Labor Force) | 1.5 | 1.0 | 1.2 | 1.2 | 1.2 |
| Current Account (billions USD) | 21.87 | 14.78 | 16.14 | 9.32 | 6.62 |
| Current Account (in % of GDP) | 8.3 | 4.6 | 4.8 | 1.6 | - |
Source: IMF - World Economic Outlook Database ; World Bank , Last Available Data
Note: (e) Estimated Data
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Thailand Baht (THB) - Average Annual Exchange Rate For 1 USD | 37.88 | 34.52 | 33.31 | 34.29 | 31.69 |
Source: World Bank - Last Available Data.
Distribution of Economic freedom in the world
Source: 2011 Index of Economic freedom, Heritage Foundation
See the Country Risk Analysis Provided By Ducroire.
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 | 2006 | 2007 | 2008 | 2009 | 2010 |
| Imports of Goods (million USD) | 128,773 | 139,966 | 179,225 | 133,668 | 182,400 |
| Exports of Goods (million USD) | 129,722 | 153,867 | 177,778 | 152,422 | 195,319 |
| Imports of Services (million USD) | 32,841 | 38,173 | 46,033 | 37,541 | 45,429 |
| Exports of Services (million USD) | 24,636 | 30,124 | 33,056 | 29,677 | 33,985 |
| Imports of Goods and Services (Annual % Change) | 3.3 | 4.4 | 8.9 | -21.5 | 21.5 |
| Exports of Goods and Services (Annual % Change) | 9.1 | 7.8 | 5.1 | -12.5 | 14.7 |
| Imports of Goods and Services (in % of GDP) | 70.2 | 65.0 | 73.9 | 57.8 | 63.9 |
| Exports of Goods and Services (in % of GDP) | 73.6 | 73.4 | 76.4 | 68.4 | 71.3 |
| Trade Balance (million USD) | 13,844 | 26,762 | 17,385 | 32,691 | 32,340 |
| Trade Balance (Including Service) (million USD) | 5,651 | 18,693 | 4,504 | 24,876 | 20,532 |
| Foreign Trade (in % of GDP) | 143.8 | 138.5 | 150.3 | 126.2 | 135.2 |
Source: WTO - World Trade Organization ; World Bank , Last Available Data
| 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
Source: Comtrade, Last Available Data
Source: Worldwide Press Freedom Index 2010, Reporters Without Borders
Map of freedom 2010
Source: Freedom House
Any Comments About This Content? Report It to Us.
© Export Entreprises SA, All Rights Reserved.
Last Updates: January 2012