An Economic
Profile of Thailand
The Kingdom of
Thailand, a developing country, has a board-based agricultural sector that
employs more than half of the country’s work force. Yet, the Kingdom
also boasts well-developed industrial, manufacturing and service sectors
and have greatly benefited from foreign direct investment for the past
couple of decades. Today, the transformation of the Thai economy
is best reflected in the country’s main exports, which include not only
agricultural produce and ready-to-wear garments, but also information technology,
communication products, automobiles, and automotive parts.
Although Thailand
was confronted by a severe economic and financial crisis in 1997, its economy
and competitive position have since rebounded and improved. The present
Government adopted a Dual Track Development Strategy to stimulate development
at the grassroots level while promoting foreign trade and investment.
This strategy has strengthened the macroeconomic foundation of the Kingdom.
Today, Thailand is one of the fastest developing and most dynamic economies
in the world.
According to the
Bank of Thailand, real GDP growth has rebounded sharply, from -10.2 per
cent in 1998 to 6.3 per cent in 2003, the highest rate since the 1997 crisis.
At the same time, inflation has declined from an average of 5.3 per cent
between 1990 and 1998 to 1.9 per cent in 2003. International reserves
stood at approximately US$42.1 billion at the end of 2003, compare with
$26.9 billion in 1997. The Thai baht currency has also stabilized
and began appreciating against the US dollar.
In terms of exports,
Thailand’s major markets in 2003 were ASEAN (20.6 per cent), the United
States (17.0 per cent), the European Union (14.7 per cent), and Japan (14.2
per cent).
During the same
year, the Kingdom’s main sources of imports were from Japan (24.1 per cent),
ASEAN (16.6 per cent), the European Union (10.0 per cent), and the United
States (9.5 per cent).
The United States
is Thailand’s second largest foreign investor after Japan. Over the
years, American companies have invested around US$16 billion in Thailand
cumulatively.
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