Economy of Thailand

According to cheeroutdoor, Thailand is an agro-industrial country with a pronounced export orientation. The main agricultural crop: rice – irrigated (in the valley of the Chao Phraya River) and dry (on the Korat plateau). Rice, rubber, and tin were traditional export commodities. Since the 1950s The country’s economy has grown into one of the most diversified in Southeast Asia. In the 1950s on the basis of state capitalism, the base of an export-substituting industry was gradually created in the country; this process as a whole was completed by the 1970s. 1980s in accordance with the program of the World Bank, which provided loans, a program was carried out to stabilize the economy, its diversification, decentralization and cooperation between the public and private sectors, while creating an export-oriented industrial sector, primarily in the production of labor-intensive goods, such as textiles, clothing, footwear, wooden and wicker furniture, later – plastic goods, electrical appliances, the next stage – the assembly of electronics, cars, etc. 1990s began to develop a high-tech sector for the production of parts for computers, parts for the automotive industry. Economic growth rates in the 1960s – 8%, in 1975-79 – 7.9%, in 1987-89 – 11.7%, in 1990-95 – 8.9%, in 1996 – 7%. Further development of high-tech industries requires the modernization of infrastructure and the training of qualified personnel. began to develop a high-tech sector for the production of parts for computers, parts for the automotive industry. Economic growth rates in the 1960s – 8%, in 1975-79 – 7.9%, in 1987-89 – 11.7%, in 1990-95 – 8.9%, in 1996 – 7%. Further development of high-tech industries requires the modernization of infrastructure and the training of qualified personnel. began to develop a high-tech sector for the production of parts for computers, parts for the automotive industry. Economic growth rates in the 1960s – 8%, in 1975-79 – 7.9%, in 1987-89 – 11.7%, in 1990-95 – 8.9%, in 1996 – 7%. Further development of high-tech industries requires the modernization of infrastructure and the training of qualified personnel.

Pegging the baht to the US dollar in con. 1990s led to a decrease in the competitiveness of labor-intensive export industries. The deficit of the balance of payments, the influx of short-term portfolio investments created the conditions for the financial and economic crisis of 1997–98, provoked by international stock speculators, which led to the destruction of the country’s banking and financial system, caused numerous bankruptcies of Thai companies, and gave rise to serious unemployment. The recommendations of the IMF, given by Thailand, were generally reduced to deregulation, privatization of state-owned enterprises, greater openness of the Thai economy to foreign capital. Under the circumstances, this threatened to oust local entrepreneurs from the economy of their country. The government led by Prime Minister Thaksin Shinawatra proposed a number of measures in 2001.

The distribution of per capita income is uneven across the provinces (in the northeast of the country, they account for only 20% of the income of Bangkok residents), which causes social problems and requires more capital to be attracted to the lagging regions of the country.

The total number of able-bodied population is 33.39 million people, 31.06 million people are employed in the national economy, of which (million people): in agriculture 14, in the extractive industry 0.05, in the manufacturing industry 4.61, in 1.51 in construction, 0.17 in public utilities, 4.91 in trade, 0.97 in transport and communications, 4.83 in services, and 0.01 in other industries. Unemployment in 1998-2001 decreased from 4.4% to 1.06%.

The share of agriculture in GDP is constantly declining: 1983 – 19.4%, 2000 – 11.2%. In addition to rice, the export of which Thailand ranks first in the world (in 2000, its export amounted to 6.14 million tons), exports include tapioca, canned fruits, frozen seafood, poultry, palm oil, rubber, flowers (orchids).

The share of industry in GDP is 30-35%. This industry suffered from the crisis of 1997 (in 1996-2000, 20 thousand enterprises, or 16%), were closed. Recovery is difficult due to the low technological level, dependence on imported parts and components. The auto-assembly industry, almost dead in the crisis, received an infusion of 1 billion baht from the Japanese and American industrial groups Denso and Delphi. Production in the textile industry grew by 3.2% in 2000, a World Bank loan was received to upgrade equipment, although textile exports face competition from Indonesia, China, Bangladesh.

Tourism is the industry that gives the largest inflow of foreign currency. The 1987/88 “Visit Thailand” advertising campaign increased the number of tourists by 15%. After the 1997 crisis, the fall of the baht allowed the tourism industry to remain competitive. A good and extensive infrastructure, including hotels, restaurants, services, aggressive marketing, extensive advertising, and an increase in the number of flights to Thailand contribute to the successful development of the industry in 2000-03, with the number of tourist arrivals increasing by an average of 8.5% per year.

Since 1961, the Thai economy has been developing in accordance with five-year plans. Each of them has a main goal. Thus, in the 8th economic development plan in 1996-2001, the main attention was paid to the development of human resources, which included the reform of education, the fight against poverty, etc.

Thailand participates in international economic cooperation within the framework of ASEAN, APEC, the Greater Mekong subregion. An agreement was reached on the establishment of an ASEAN-PRC free trade zone and a Thailand-PRC bilateral free trade zone within 10 years.

Economy of Thailand