Economy Thailand
Economy - overview:
With a well-developed infrastructure, a free-enterprise economy,
and pro-investment policies, Thailand appears to have fully
recovered from the 1997-98 Asian Financial Crisis. The country was
one of East Asia's best performers in 2002-04. Boosted by increased
consumption and strong export growth, the Thai economy grew 6.9% in
2003 and 6.1% in 2004 despite a sluggish global economy. Bangkok has
pursued preferential trade agreements with a variety of partners in
an effort to boost exports and to maintain high growth. In 2004,
Thailand and the US began negotiations on a Free Trade Agreement. In
late December 2004, a major tsunami took 8,500 lives in Thailand and
caused massive destruction of property in the southern provinces of
Krabi, Phangnga, and Phuket. Growth slowed to 4.4% in 2005. The
downturn can be attributed to high oil prices, weaker demand from
Western markets, severe drought in rural regions, tsunami-related
declines in tourism, and lower consumer confidence. Moreover, the
THAKSIN administration's expansionist economic policies, including
plans for multi-billion-dollar mega-projects in infrastructure and
social development, has raised concerns about fiscal discipline and
the health of financial institutions. On the positive side, the Thai
economy performed well beginning in the third quarter of 2005.
Export-oriented manufacturing - in particular automobile production
- and farm output are driving these gains. In 2006, the economy
should benefit from an influx of investment and a revived tourism
sector; however, a possible avian flu epidemic could significantly
harm economic prospects throughout the region.
GDP (purchasing power parity):
$550.2 billion (2005 est.)
GDP (official exchange rate):
$183.9 billion (2005 est.)
GDP - real growth rate:
4.5% (2005 est.)
GDP - per capita (PPP):
$8,600 (2005 est.)
GDP - composition by sector: agriculture: 9.9% industry: 44.1% services: 46% (2005 est.)
Labor force: 35.36 million (2005 est.)
Labor force - by occupation: agriculture: 49% industry: 14% services: 37% (2000 est.)
Unemployment rate:
1.8% (2005 est.)