Thailand

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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.

Following the international financial crisis in 2009, Thailand showed the first real permanent reduction of its economy's GDP growth in almost ten years. Domestic consumption dropped slightly. There is a reduction in private investmestment while investors are waiting for domestic policy clarification. However, several industrial sectors have started to recover, but the price of agricultural products and in the tourism sector are still falling.

In 2009, the Thai economy has therefore continued into the recession which started in 2008, with recovery expected to take place during 2010 due to public investment, a vital factor for growth in the coming years. In the last few months, inflation has dropped considerably due to the reduction of energy prices. As for the performance of Thai banks, The IMF predicts high capitalization while the number of bad debts has continued to decline since reaching a peak during the Asian financial crisis which hit Thailand in 1997. The country recently activated a recovery plan called "Thailand: Invest to become stronger". This plan which would be spread out up to 2012 and with a budget of approximately euros 30 billion, should allow for the creation of 1.5 million jobs and stimulate private consumption. Thailand can also benefit from its geographical location, between China and India, whose markets are expected to stimulate the global economy in the future. Nevertheless, the country's reigning political instability represents a source of concern for the implementation of the anticipated recovery plans.

Main indicators	2006	2007	2008	2009	2010
GDP (billions USD)	206.99	246.05	273.25e	268.58	280.06
GDP (constant prices, annual % change)	5.2	4.9	2.6	-3.0	1.0e
GDP per capita (USD)	3,171	3,743	4,115e	4,005	4,135
Inflation rate (%)	4.6	2.2	5.5e	0.5	3.4e
Unemployment rate (% of the labor force)	-	-	1.4	-	-
Current Account (billions USD)	2.17	14.05	-0.18	1.62e	0.51
Current Account (in % of GDP)	1.1	5.7	-0.1	0.6	0.2

Source: IMF - World Economic Outlook Database ; CIA - The world factbook

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)	42.6	20.2	37.1
Value added (in % of GDP)	11.4	43.9	44.7
Value added (annual % change)	3.9	5.4	4.3

- last available data.

Monetary indicators	2004	2005	2006	2007	2008
Thailand Baht (THB) - Average annual exchange rate for 1 USD	40.22	40.22	37.88	34.52	33.32

Source: World Bank - World Development Indicators

Indicator of economic freedom

Score:: 63/100
Position:: moderately free
World Rank:: 67 out of 179
Regional Rank:: 10 out of 42

Distribution of Economic freedom in the world
Source: 2008 Index of Economic freedom, Heritage Foundation

Country risk

See the country risk analysis provided by Ducroire.

Foreign trade in figures

Thailand is an emerging economy, very dependent on exports, which count for more than two-thirds of the GDP. Thailand is very open to international trade 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 three import partners are: Japan, China and the United States. Thailand mainly imports electric and electronic equipment, mineral fuels and oil, machinery, iron and steel, and plastics. In 2008, Thailand showed a trade surplus. However, due to the international economic crisis, exports have had a 2 figure drop since the beginning of 2009.

Foreign trade indicators	2003	2004	2005	2006	2007
Imports of goods (millions USD)	66,909	84,193	105,981	114,085	124,479
Exports of goods (millions USD)	78,083	94,979	109,369	127,929	150,026
Imports of services (millions USD)	18,169	23,077	27,027	33,015	38,425
Exports of services (millions USD)	15,798	19,040	20,163	24,822	30,357
Imports of goods and services (annual % change)	8.4	13.4	8.7	2.6	3.5
Exports of goods and services (annual % change)	7.1	9.6	3.9	8.5	7.1
Imports of goods and services (in % of GDP)	58.9	65.8	74.7	70.0	65.7
Exports of goods and services (in % of GDP)	65.7	70.7	73.4	73.5	73.3
Trade Balance (millions USD)	11,175	10,785	3,388	13,844	25,547
Trade Balance (including service) (millions USD)	8,804	6,748	-3,477	5,651	17,478
Foreign trade (in % of GDP)	124.6	136.5	148.2	143.4	139.0

Source: World Bank

Main partner countries

Main customers (% of exports)	2007
United States	12.6%
Japan	11.8%
China	9.7%
Singapore	6.2%
Hong Kong	5.7%
Malaysia	5.1%
Australia	3.7%
Indonesia	3.2%
Vietnam	2.6%
Netherlands	2.5%
United Kingdom	2.3%
South Korea	1.9%
Philippines	1.9%
Germany	1.9%
India	1.9%
United Arab Emirates	1.5%
Italy	1.2%
France	1.1%
Belgium	1.1%
Saudi Arabia	0.9%
See more countries	54.0%

Main suppliers (% of imports)	2007
Japan	20.9%
China	11.8%
United States	6.7%
Malaysia	6.0%
United Arab Emirates	4.8%
Singapore	4.4%
South Korea	3.9%
Saudi Arabia	3.2%
Indonesia	2.8%
Australia	2.7%
Germany	2.7%
Oman	1.8%
Myanmar	1.6%
Philippines	1.5%
India	1.4%
Qatar	1.4%
Russia	1.3%
United Kingdom	1.1%
Switzerland	1.0%
Hong Kong	1.0%
See more countries	49.8%

Source: Comtrade

Main products

Main exports (% of exports)	2007
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	18.8%
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	16.7%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	8.3%
Rubber and articles thereofRubber and articles thereof	6.2%
Plastics and articles thereofPlastics and articles thereof	4.9%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	4.5%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	3.5%
Preparations of meat, of fish or of crustaceans,...Preparations of meat, of fish or of crustaceans, molluscs or other aquatic invertebrates	2.8%
CerealsCereals	2.3%
Iron and steelIron and steel	2.3%
Organic chemicalsOrganic chemicals	1.8%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	1.7%
Articles of iron or steelArticles of iron or steel	1.6%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.6%
Articles of apparel and clothing accessories,...Articles of apparel and clothing accessories, knitted or crocheted	1.3%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	1.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.9%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.9%
Sugars and sugar confectionerySugars and sugar confectionery	0.9%
Copper and articles thereofCopper and articles thereof	0.9%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.8%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.8%
Man-made staple fibresMan-made staple fibres	0.7%
Aluminium and articles thereofAluminium and articles thereof	0.7%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.6%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.6%
Ceramic productsCeramic products	0.6%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.5%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.5%
Edible vegetables and certain roots and tubersEdible vegetables and certain roots and tubers	0.5%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.5%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.5%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.4%
Man-made filamentsMan-made filaments	0.4%
CottonCotton	0.4%
Glass and glasswareGlass and glassware	0.3%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.3%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.3%
Miscellaneous chemical productsMiscellaneous chemical products	0.3%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.3%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.3%
Animal or vegetable fats and oils and their...Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes	0.2%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.2%
Articles of leather; saddlery and harness; travel...Articles of leather; saddlery and harness; travel goods, handbags and similar containers; articles of animal gut (other than silkworm gut)	0.2%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.2%
Tin and articles thereofTin and articles thereof	0.2%
Other made-up textile articles; sets; worn...Other made-up textile articles; sets; worn clothing and worn textile articles; rags	0.2%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.2%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.2%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.2%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Pharmaceutical productsPharmaceutical products	0.1%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.1%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.1%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.1%
Special woven fabrics; tufted textile fabrics;...Special woven fabrics; tufted textile fabrics; lace; tapestries; trimmings; embroidery	0.1%
Ores, slag and ashOres, slag and ash	0.1%
Carpets and other textile floor coveringsCarpets and other textile floor coverings	0.1%
See more products	45.0%

Main imports (% of imports)	2007
Electrical machinery and equipment and parts...Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles	19.2%
Mineral fuels, mineral oils and products of their...Mineral fuels, mineral oils and products of their distillation; bituminous substances; mineral waxes	18.0%
Nuclear reactors, boilers, machinery and...Nuclear reactors, boilers, machinery and mechanical appliances; parts thereof	13.5%
Iron and steelIron and steel	8.5%
Plastics and articles thereofPlastics and articles thereof	3.6%
Vehicles other than railway or tramway...Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof	3.1%
Organic chemicalsOrganic chemicals	2.9%
Natural or cultured pearls, precious or...Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin	2.9%
Articles of iron or steelArticles of iron or steel	2.5%
Copper and articles thereofCopper and articles thereof	2.2%
Optical, photographic, cinematographic, measuring,...Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof	2.0%
Aluminium and articles thereofAluminium and articles thereof	1.6%
Miscellaneous chemical productsMiscellaneous chemical products	1.3%
Fish and crustaceans, molluscs and other aquatic...Fish and crustaceans, molluscs and other aquatic invertebrates	1.1%
Inorganic chemicals; organic or inorganic...Inorganic chemicals; organic or inorganic compounds of precious metals, of rare-earth metals, of radioactive elements or of isotopes	0.9%
FertilizersFertilizers	0.9%
Rubber and articles thereofRubber and articles thereof	0.9%
Aircraft, spacecraft, and parts thereofAircraft, spacecraft, and parts thereof	0.9%
Paper and paperboard; articles of paper pulp, of...Paper and paperboard; articles of paper pulp, of paper or of paperboard	0.8%
Pharmaceutical productsPharmaceutical products	0.7%
Tanning or dyeing extracts; tannins and their...Tanning or dyeing extracts; tannins and their derivatives; dyes, pigments and other colouring matter; paints and varnishes; putty and other mastics; inks	0.7%
Residues and waste from the food industries;...Residues and waste from the food industries; prepared animal fodder	0.7%
CottonCotton	0.6%
Oil seeds and oleaginous fruits; miscellaneous...Oil seeds and oleaginous fruits; miscellaneous grains, seeds and fruit; industrial or medicinal plants; straw and fodder	0.4%
Tools, implements, cutlery, spoons and forks, of...Tools, implements, cutlery, spoons and forks, of base metal; parts thereof of base metal	0.4%
Wood and articles of wood; wood charcoalWood and articles of wood; wood charcoal	0.4%
Raw hides and skins (other than furskins) and...Raw hides and skins (other than furskins) and leather	0.4%
Essential oils and resinoids; perfumery, cosmetic...Essential oils and resinoids; perfumery, cosmetic or toilet preparations	0.4%
Pulp of wood or of other fibrous cellulosic...Pulp of wood or of other fibrous cellulosic material; recovered (waste and scrap) paper or paperboard	0.4%
Dairy produce; birds' eggs; natural honey; edible...Dairy produce; birds' eggs; natural honey; edible products of animal origin, not elsewhere specified or included	0.4%
Man-made filamentsMan-made filaments	0.3%
Glass and glasswareGlass and glassware	0.3%
Ores, slag and ashOres, slag and ash	0.3%
Soap, organic surface-active agents, washing...Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, 'dental waxes' and dental preparations with a basis of plaster	0.3%
Clocks and watches and parts thereofClocks and watches and parts thereof	0.3%
Knitted or crocheted fabricsKnitted or crocheted fabrics	0.3%
Miscellaneous articles of base metalMiscellaneous articles of base metal	0.2%
Ceramic productsCeramic products	0.2%
Man-made staple fibresMan-made staple fibres	0.2%
CerealsCereals	0.2%
Miscellaneous edible preparationsMiscellaneous edible preparations	0.2%
Furniture; bedding, mattresses, mattress supports,...Furniture; bedding, mattresses, mattress supports, cushions and similar stuffed furnishings; lamps and lighting fittings, not elsewhere specified or included; illuminated signs, illuminated name-plates and the like; prefabricated buildings	0.2%
Preparations of cereals, flour, starch or milk;...Preparations of cereals, flour, starch or milk; pastrycooks' products	0.2%
Impregnated, coated, covered or laminated textile...Impregnated, coated, covered or laminated textile fabrics; textile articles of a kind suitable for industrial use	0.2%
Tin and articles thereofTin and articles thereof	0.2%
Ships, boats and floating structuresShips, boats and floating structures	0.2%
Lead and articles thereofLead and articles thereof	0.2%
Edible fruit and nuts; peel of citrus fruits or...Edible fruit and nuts; peel of citrus fruits or melons	0.1%
Printed books, newspapers, pictures and other...Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans	0.1%
Beverages, spirits and vinegarBeverages, spirits and vinegar	0.1%
Products of the milling industry; malt; starches;...Products of the milling industry; malt; starches; inulin; wheat gluten	0.1%
Miscellaneous manufactured articlesMiscellaneous manufactured articles	0.1%
Articles of apparel and clothing accessories, not...Articles of apparel and clothing accessories, not knitted or crocheted	0.1%
Photographic or cinematographic goodsPhotographic or cinematographic goods	0.1%
Articles of stone, plaster, cement, asbestos, mica...Articles of stone, plaster, cement, asbestos, mica or similar materials	0.1%
Salt; sulphur; earths and stone; plastering...Salt; sulphur; earths and stone; plastering materials, lime and cement	0.1%
Toys, games and sports requisites; parts and...Toys, games and sports requisites; parts and accessories thereof	0.1%
Albuminoidal substances; modified starches; glues;...Albuminoidal substances; modified starches; glues; enzymes	0.1%
Footwear, gaiters and the like; parts of such...Footwear, gaiters and the like; parts of such articles	0.1%
Preparations of vegetables, fruit, nuts or other...Preparations of vegetables, fruit, nuts or other parts of plants	0.1%
Wadding, felt and nonwovens; special yarns; twine,...Wadding, felt and nonwovens; special yarns; twine, cordage, ropes and cables and articles thereof	0.1%
See more products	37.3%

Source: Comtrade

See more products: More imports (Intracen Data)
More exports (Intracen Data)

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

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: PHUMIPHON Adunyadet (since June 1946) – hereditary
Prime Minister: ABHISIT Wetchachiwa (since december 2008).
Next election dates: Senate: April 2012
House of Representatives: Year 2011

Indicator of freedom of the press

World Rank:: 124/173
Evolution:: 11 places up compared to 2007

Source: Worldwide Press Freedom Index 2007, Reporters Without Borders

Indicator of political freedom

Ranking:: Partly Free
Political freedom:: 5/7
Civil liberties:: 4/7

Map of freedom 2007
Source: Freedom House

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