Thailand's economy: industry, agriculture, foreign trade. Foreign trade Thailand what produces

Lives exclusively on tourism and ... latex. Fortunately, this is not the case. Tourism plays an important role in the country's economy, but its share in the country's GDP is at the level of 10%, but the share of tourism in the Thai economy is increasing every year. Thailand has a strong export-oriented industry. The country pursues a policy of attracting foreign capital, a large number of Japanese enterprises, ranging from the electronics industry to the automotive and metallurgical industries.

In Thailand, Japanese, American, European cars, as well as motorbikes are assembled, components for cars are produced. Electronics production - Nikon and Sony cameras, hard drives, computer components, Canon photo printers. etc. Manufacture of household appliances - washing machines, refrigerators. The petrochemical industry, Thailand does not have much of its own oil, so oil is mainly bought from the Emirates and Indonesia, Thai oil companies are beginning to actively engage in oil production in neighboring Myanmar.

The largest factories Nikon, Sony, Canon which produce cameras, MFPs and other electronics are located on the territory of Thailand. In Thailand, there are 10 factories of the Japanese company "Fujikura", which occupies 10% of the world market for bending printed circuits, which are necessary for the production of smartphones, telephones and other everyday electronics.

The textile industry is also well developed and, of course, the production of consumer goods. Plastic products, glass, clothing, household products, covering absolutely all areas of consumption - everything is made in Thailand.

Do not forget about agriculture - until recently, Thailand was the largest exporter of rice (until 2013), plays an important role in the export of fruits and seafood. The food industry is well developed.

General information

Thailand has the economy of an industrialized country. The economy is largely dependent on exports, with exports accounting for two-thirds of the gross domestic product (GDP). In 2012, Thailand's GDP was 11.363 trillion baht (USD365 billion) at current market prices, according to the National Economic and Social Development Authority. In 2012, the Thai economy expanded 6.4% with inflation of 3% and a current account surplus of 0.7% of the country's GDP. In 2013, the expected growth of the Thai economy is between 4.5% and 5.5%.

Most of the GDP is created in the industrial sector and the service sector, their combined share in GDP is 39%. Many people mistakenly believe that agriculture is the main source of GDP. Today, the share of agriculture is only 8.6%, lower than in the trade, logistics and communications sectors, which account for 13.5% and 9.6% of GDP, respectively. The construction and mining sectors add another 4.3% to the country's gross domestic product. In addition to this, other service sectors (financial, educational, hotels and restaurants, etc.) contribute about 25% to the country's GDP. Telecommunications in Thailand, as well as trade in services, are actively developing in areas of industrial decline, thereby increasing the economic competitiveness of the regions, which has a beneficial effect on the Thai economy.

Thailand is the second largest country in Southeast Asia after Indonesia. However, the country's GDP per capita as of 2012 is quite low, around $ 5,382. Judging by the statistics on the size of GDP per capita, the Kingdom is behind such countries of Southeast Asia as Singapore, Brunei and Malaysia. As of January 4, 2013, Thailand holds USD180.9 billion in monetary base and international reserves, which places the country in 2nd place in Southeast Asia after Singapore. As for the volume of foreign trade, Thailand is again the second among the countries of Southeast Asia, after Singapore.

Regarding the level of development of the country and the situation in the social sphere, The World Bank has recognized Thailand as "the most successful example of the country's correct development." Thailand is currently an upper middle income country, despite the fact that there is only USD 4,451 of gross national income (GNI) per capita, and the Human Development Index (HDI) is only 103rd. Over the past 22 years, the proportion of the population with incomes below the subsistence level has declined from 42.2 in 1988 to 7.8 in 2010. As of the fourth quarter of 2012 (Q4 / 2012), the unemployment rate is 0.5%. This means that Thailand is the country with the lowest unemployment rate in the world (third after Monaco and Qatar). As of Q4 / 2012, inflation growth remains unchanged (3.2%) and the policy-driven interest rate is 2.75%.

Historical overview of the development of the Thai economy

Period until 1945

Thailand, formerly known as Siam, has been an open country for foreign contacts since pre-modern times. Despite the scarcity of resources in Siam, the seaports and cities at the mouth of the river were the first economic centers. Foreign traders from Persia, Arab countries, India and China were actively welcomed there.

During the reign of Ayutthaya in the 14th century, Chinese commercial activity revived and the Kingdom became one of the most prosperous trade centers in Asia.

In the 19th century, when Bangkok became the capital of the Kingdom, foreign trade, mainly with China, began to be controlled by the government. Chinese merchants came to trade, but many remained in the country and received official positions. Some Chinese merchants and migrants took up high-ranking positions at the court. From the middle of the 19th century, trade with European countries began to develop actively. The Bowring Treaty, signed in 1855, guaranteed a number of privileges for British merchants. The 1856 Harris Treaty, which amended and extended the 1833 Roberts Treaty, provided similar privileges to American merchants.

Despite this, domestic trade in Thailand developed at a slow pace. Some scholars have suggested that slavery was the cause of internal stagnation. The fact is that most of the male population in Siam was in the service of court officials, while their wives and daughters were engaged in small trade in local markets. Eventually, Siam began to lack labor and "domestic" entrepreneurs. King Rama V abolished serfdom and slavery in 1901 and 1905, respectively.

From the beginning of the 20th century until the end of World War II, Siam's economy gradually became part of the international economy. The main entrepreneurs were Chinese by origin, who eventually became citizens of Siam. The export of agricultural products, especially rice, was very important for the country. Thailand has been and is one of the world's top rice exporters. However, until 1945, Siam's economy suffered greatly from the Great Depression in the 1920s and 1930s, which was the main cause of the Siam Revolution in 1932.

Period from 1945 to 1955

In the post-war period during the Cold War, Thai both domestic and foreign policy had a significant impact on economic development. From 1945 to 1947, before the Cold War began, the Thai economy suffered greatly from the aftermath of World War II. During the war, the Thai government, led by Field Marshal Luang Phibulsongkram, united with Japan and declared war on the Alliance. As a result, after the war, Thailand was obliged to supply 1.5 million tons of rice to the Western allies for free. The country's economic recovery has become problematic. To tackle this problem, the Thai government has established the Rice Office (Rice Office). During this period of financial and monetary problems, a system of multiple exchange rates was introduced. In addition, the Kingdom also faced a shortage of consumer goods.

In November 1947, a short period of the reign of democracy in Thailand ended with a military coup. However, in 1947, the Thai economy received a new boost. In his dissertation, Somsak Nilnopkoon argues that the period from 1947 to 1951 was a watershed for the country. Already in April 1948, coups took place in the country, as a result of which Field Marshal Luang Phibulsongkram took over as prime minister. No sooner had Luang Phibulsongkram been appointed to his post, he realized that a struggle for power was brewing between the lower-ranking officials. The Field Marshal began an active anti-communist campaign to maintain his political power, while enlisting the support and assistance of the United States. As a result, since 1950, Thailand has received both military and economic aid from the United States. In terms of economic policy, the Phibulsongkram government established many state-owned enterprises that were considered the benchmark for economic nationalism in the country. During this period, the state (or, in fact, officials) distributes capital in the Kingdom in such a way that all major investments were under the government's control - which is why Dr. Ammar Siamwalla, one of Thailand's most famous economists, calls this period "bureaucratic capitalism."

The period from 1955 to 1985

However, in 1955, Thailand's economy was undergoing tremendous changes. Both domestic and foreign policies have played an important role in this process. By 1955, the internal power struggle between the two main factions of the Phibula regime had become fiercest (on the one hand, General Phao Sriyanonda and General (later Field Marshal) Srisdi Dhanarajata on the other). General Phao Sriyanonda tried to enlist the support of the US Government in order to carry out a coup in order to overthrow Phibul (he was granted in this request). As a result, Field Marshal Luang Phibulsongkram chose a different path to consolidate his power - he tried to democratize his regime and enlist the support of the population by developing the national economy. To achieve this, he again turned to the United States with a request for the provision of primarily economic rather than military assistance. The US government responded to this request with an unprecedented degree of economic aid to the Kingdom from 1955 to 1959. In addition to this, some important changes in financial and monetary policy have been made by the Phibulsongkram government. One of these changes was the abolition of the multiple exchange rate system and the introduction of a fixed single exchange rate system. This system was used in the Kingdom until 1984. However, the government of Phibulsongkram decided to get rid of international influence in the field of trade, for this, secret negotiations were held with the government of the People's Republic of China. This situation has displeased the United States.

Despite numerous attempts to maintain his power, Field Marshal Luang Phibulsongkram could not hold out as prime minister. On September 16, 1957, Field Marshal Srisdi Dhanarazhata successfully staged a military coup, ousting Field Marshal Luang Phibulsongkram, Field Marshal Phin Choonhavan and General Phao Sriyanond (Phibul Phin Phaandao) from the Thai government. In terms of economic development, the government under the leadership of Srisdi not only continued what Phibul began in 1955, but also succeeded. The new government secured the full support of the United States through its decision to end all relations with the People's Republic of China and to support US activities in Indochina. The Srisdi regime (1957-1973) had a huge impact on the development of the country's infrastructure, and it was during this period that all state-owned enterprises that did not belong to the infrastructure of Thailand were privatized. During this period, a number of important economic institutions were established, such as the Budget Office, the National Economic and Social Development Authority and the Investment Authority of Thailand. Since 1961, the Economic and Social Development Plan has been applied. Most important to the Thai economy during this period was the introduction of market-oriented import substitution industrialization, which led to stable and rapid economic growth in the Kingdom in the 1960s. Thailand has experienced rapid economic growth since 1958, with an average growth rate of 7% per year, according to a quote from an article by former President Richard M. Nixon (Foreign Affairs, 1967).

However, between 1970 and 1984, Thailand suffered from many economic problems: a lack of American investment, a deficit in the current account, a sudden rise in oil prices, and inflation. Domestic policy was notable for instability. Moreover, international politics also suffered from the unfriendly environment of the Kingdom. Once Vietnam occupied Democratic Kampuchea (Cambodia) on December 25, 1978, Thailand became a country with a "real" front line in the fight against communism. At that time, Thailand was surrounded by three hostile communist countries of Indochina, as well as socialist Burma under the rule of General Ne Win. Subsequent governments have tried to tackle economic problems with a series of laws, some of which (such as promoting exports and tourism) are still incredibly relevant to the Thai economy.

Some of the most significant (and most memorable) measures to combat the economic problems facing the state at that time were taken by the government of General Prem Tinsulanonda, who was in power from 1980 to 1988. Between 1981 and 1984 over the years, the Thai government has devalued the national currency, the Thai baht (THB), three times. The first time was on May 12, 1981, when the government devalued the Baht by 1.07%, from THB20.775 / USD to THB21 / USD. The second time was on July 15, 1981 by 8.7% from THB21 / USD to THB23 / USD. The most significant was the third devaluation. On November 2, 1987, the Thai government decided to devalue the Baht by 15%, from THB23 / USD to THB27 / USD. In addition to this, the government decided to replace the fixed exchange rate system (with the US dollar) with the so-called "multiple currency basket system" (one way or another, the US dollar occupied about 80% of the total weight in the basket). According to the International Monetary Fund, during the period 1980-1984, the Thai economy had an average GDP growth rate of 5.4%.

Economy of Thailand from 1985 to 1997

The third devaluation of the Thai baht was not the only one, on September 22, 1985, Japan, the United States, the United Kingdom, France and West Germany signed the Plaza Agreement for Coordinated Foreign Exchange Interventions, in which the US dollar depreciated against the Japanese yen and the German mark. Since the US dollar accounted for 80% of Thailand's currency basket, the Thai baht also depreciated. These processes have made Thailand's exports more competitive and the country more attractive to foreign direct investment (FDI), especially from Japan, whose national currency has been in value since 1985. In 1988, Thailand became more democratic after General Prem Tinsulanonda resigned and was replaced by Major General (later General) Chatichai Choonhavan, the first Prime Minister of Thailand since 1976, who was elected according to democratic norms. Moreover, the III Indo-China War was coming to an end, the troops of Vietnam finally left Cambodia in 1989. All this had a beneficial effect on the development of the Thai economy.

Following the devaluation of the baht in 1984 and the Plaza Accord in 1985, the private sector of Thailand's economy began to grow, although the government sector was still in poor condition due to a number of financial constraints. The success of international trade and the influx of foreign direct investment, mainly from Japan, resulted in a decade of booming Thai economy from 1987 to 1996. Despite the fact that the country was actively engaged in exports earlier, it was at this time that Thailand completely switched from import-substituting industrialization to export-oriented industrialization. According to the IMF, it was during these ten years that Thai GDP had an average growth rate of 9.5% per annum, peaking at 13.3% in 1988. In the same decade, exports of goods and services had an average growth rate of 14.8%, peaking at 26.1% in 1988.

However, many economic problems persist in this decade. From 1987 to 1996, Thailand experienced a huge current account deficit averaging 5.4% of GDP per year, and it continues to grow. In 1996, the current account deficit amounted to 7.887% of the country's GDP (or USD14.351 billion). Another problem was the lack of capital in the country. The Chuan Leekpai government (September 1992-May 1995) tried to solve this problem by introducing in 1993 a system of preferential treatment of international banks (BIBF) for Thai financial institutions. This innovation unexpectedly led to even more serious economic problems. As a result, BIBF-licensed banks received low-interest loans from foreign financial institutions and then extended higher-interest loans to Thai institutions. As a result, by 1997, the country's external debt had grown to USD109, 276 billion, 65% of which were short-term debt, Thailand's international reserves before the crisis were only USD38, 700 billion. Many of the loans provided were used to develop business in the real estate sector. - this led to a bubble economy (the economy is experiencing a rapid rise in stock prices and an increase in employment). Moreover, at the end of 1996, there was a massive loss of confidence in the country's financial institutions. In 1996, the Thai government closes 18 trust companies and 3 commercial banks. In 1997, 56 financial institutions were closed by the government.

All these difficulties led to another problem - a speculative attack. Informed of all the economic problems facing the Kingdom and the fact that Thailand uses a multiple currency basket system, foreign speculators (including hedge funds) were confident that the Thai government would soon have to devalue the Baht. At the same time, Bath came under pressure on the one hand from the cash market and the derivatives market on the other. In the spot market, the situation was as follows: in order to accelerate the devaluation process, speculators took out a loan in Baht and provided it for US dollars. In the derivatives market, speculators, being confident that the baht would soon be devalued, bet on the current situation by concluding agreements with dealers who would provide a loan for a certain amount in US dollars and agree to repay it in the form of a predetermined amount in baht a few months later. The devaluation of the baht was called for by Dr. Virapong Ramangkul, one of the economic advisers to Prime Minister Chavalit Yongchaiyudh. The position of the baht was so threatening that General Prem Tinsulanonda, the respected former prime minister of the country, asked General Chavalit Yongchayudh to consider Dr. Weerapong Ramangkul's proposals with great attention. However, General Chawalit Yongchayudha ignored this request and instead relied on the National Bank of Thailand, led by Governor Rerngchai Marakanond, who spent over USD24,000 billion (about two-thirds of the Kingdom's international reserves) to maintain the baht position. On July 2, 1997, Thailand had only USD2, 850 billion in international reserves and, therefore, could not fight against speculative attacks and artificially support the rate of the Thai baht. On the same day, Rerngchai Marakanond announced a fall in the exchange rate of the national currency. This was the beginning of the 1997 Asian financial crisis.

Economy of Thailand from 1997 to 2006

In short, Thailand's economy collapsed from the 1997 Asian financial crisis, with Bangkok as its starting point. A few months later, the value of the Thai baht dropped from THB25 / USD to the lowest at THB56 / USD. The Thailand Stock Exchange (FBT) sharply reduced the number of transactions by 1,753.73 points in 1994 to 207.31 points in 1998. In terms of the national currency, the country's GDP fell from THB3.115 trillion. at the end of 1996 to THB2.749 trillion. at the end of 1998. In terms of US dollars, it took Thailand 10 years to recover the same volume of GDP it had in 1996. The unemployment rate has nearly tripled, from 1.5% of the total labor force in 1996 to 4.4% in 1998. The sharp and sudden depreciation of the baht has directly affected the size of the external debt, which has a devastating effect on the stability of large financial institutions. Many of them were partially sold to foreign investors, and some went bankrupt. The events of July 2, 1997 led to the fact that Thailand had only USD2, 850 billion in international reserves, so the Thai government had to take out a loan from the International Monetary Fund (IMF). As a result, Thailand received USD17.2 billion in bilateral and multilateral aid.

The crisis has also had a direct and indirect impact on the political situation in Thailand. The direct impact was that General Chawalit Yongchayudh, then Prime Minister of the Kingdom, resigned under pressure on November 6, 1997, and was replaced by the head of the opposition, Chuan Leekpai. The government under the leadership of Chuan Leekpai (in power from November 1997 to February 2001) tried to implement economic reforms dictated by the philosophy of neoliberal capitalism of the IMF. His government had very strict fiscal and monetary restrictions, such as maintaining high interest rates while cutting government spending. In addition to this, the government under the leadership of Chuan Likpai passed 11 laws called the "bitter pill." The government and its supporters have repeatedly stressed that these measures will have a positive impact on the Thai economy. In 1999, Thailand experienced positive GDP growth for the first time since the onset of the crisis. However, the economic measures taken by the Chuan Leekpai government have generated many critical comments. For example, many critics said that the government needed to find another source of loans and did not trust the IMF. Cuts in government spending have actually hurt the economic recovery. Unlike the economic problems in Latin America and Africa, the Asian financial crisis began in the private sector. Clear measures of the IMF should not have been applied everywhere to solve various kinds of problems. We saw positive GDP growth rates in 1999 only due to the fact that in the previous two years the rates only decreased, for example, -10.5% in 1998. In fact, the country's GDP reached the 1996 level only in 2002 (in terms of US dollars, only by 2006). Despite all the achievements, the contribution of Chuan Likpai's government to the development and stabilization of Thailand's economy remains controversial.

The most important indirect influence on the Thai political situation during the financial crisis was Thaksin. Thanks in large part to the (alleged) failure of the Chuan Likpai government to restore the country's economy, in 2001, the Tai Rak Tai party led by Police Lieutenant Colonel Thaksin Shinawatra won a landslide victory in the general election over the Democratic Party led by Chuan Likpai and took office in February 2001. ... Despite weak exports, GDP growth was 2.2% in the first year of the leadership of the new political force, GDP growth rates from 2002 to 2004 under the government of Thaksin Shinawatra were 5.3%, 7.1% and 6.3%, respectively. A number of his policies were later called Thaksinomics. During the first term of the Thaksin government, Thailand recovered a stable economy and was able to pay off all of its debts to the IMF until July 2003 (two years ahead of schedule). The success of his economic policies was one of the reasons why Thaksin's party won another convincing victory over the Democratic Party in the 2005 elections.

However, the second term of the Thaksin administration was not as successful as the first. The Indian Ocean tsunami struck on December 26, 2004, which negatively affected the growth of Thai GDP in the first quarter of 2005 (Q1 / 2005). In 2005, the phenomenon of "Yellow Shirts" (the coalition against the Thaksin government) is observed. In 2006, the political situation in Thailand became so tense that Thaksin finally dissolved parliament and called for a general election amid fierce criticism. The 2006 General Election was scheduled for April, but the main opposition parties refused to participate. Thaksin's party won again, but the elections were invalidated by the Constitutional Court.

New elections were scheduled for October 2006 but were canceled due to the events of September 19, 2006, when a group of soldiers calling themselves the Council for Democratic Reform under the Constitutional Monarchy, led by General Sonthi Boonyaratglin, staged a coup d'état, displacing Thaksin, when he was in New York preparing for a report at a meeting of the United Nations General Assembly. However, over the last year of the Thaksin Government, the country's GDP grew by 5.1%. Overall, Thailand's place in the Annual Global Competitiveness Ranking rose significantly from 31st in 2002 to 25th in 2005, before falling to 29th in 2006.

Economy of Thailand from 2006 to present

After the coup, Thailand has seen an economic downturn due to political events. From the last quarter of 2006 (Q4 / 2006) to 2007, Thailand has been under the military regime of a junta led by General Surayud Chulanont, who was appointed prime minister in October 2006. The GDP growth rates in 2006 decreased on a quarterly basis: from 6.1%, 5.1%, 4.8% in the first three quarters to 4.4% in the 4th quarter of 2006. In addition, Thailand's place in the annual global competitiveness rankings dropped significantly from 26th in 2005 to 29th in 2006 and then 33rd in 2007. Thaksin's plan for massive investment in infrastructure was not mentioned until 2011, when his younger sister, Yingluck Shinawatra, took over the government. In 2007, Thailand's economy grew by 5%. On December 23, 2007, the military government held a general election. The People's Party, led by Samak Sundaravej, won a landslide victory over the Democratic Party of Abhisit Vejjajiva. This triumph of the People's Party is often considered the third victory of Thaksin's policies in the country's general elections.

However, with the coming to power of the People's Party, the country fell into a period of political turmoil. Due to the financial crisis of US enterprises in the last two quarters of 2008 (Q3-Q4 / 2008), the growth of Thai GDP in 2008 fell by 2.5%. Although Thailand's GDP grew 6.5% in the first quarter of 2008 (Q1 / 2008), the People's Democratic Alliance (Yellow Shirts) was reconvened in March. In addition, Thailand's place in the annual global competitiveness rankings has grown substantially from 33rd in 2007 to 27th in 2008. The situation was aggravated when the Yellow Shirts took over the Thai Government House in August 2008. On September 9, 2008, the Constitutional Court ruled to remove Samak Sundaravet from the post of Prime Minister. Somchai Wongsawat, a relative of Thaksin, took over as Prime Minister of the Kingdom on September 18, 2008. While the Yellow Shirts occupied Government House, preventing the administration from operating on a regular basis, the US financial crisis peaked. As a result, the GDP growth rate declined from 5.2% in Q2 / 2008 to 3.1% and -4.1 percent in Q3-Q4 / 2008. Moreover, from November 25 to December 3, 2008, "Yellow Shirts" , protesting against the appointment of Somchai Wongsavat, captured two Bangkok airports (Suvarnabhumi and Don Muang). This damaged not only the country's economy, but also the image. On December 2, 2008, the Constitutional Court of Thailand ruled to dissolve the People's Party and resign Somchai Wongsawat.

By the end of 2008, a coalition government was formed, most of which were members of the Democratic Party led by Mr. Abhisit Vejjajiva. “The legitimacy of the Abhisit government was questioned from the very first day of his coming to power in 2008, as it was formed under the military regime.” As a result, the new government faced problems associated not only with the financial crisis of US enterprises, but the activities of the Red shirts ", which denied the appointment of Mr. Abhisit Vejachiva to the post of prime minister and called for new elections in the near future. However, Mr. Abhisit Vejachiva decided to dissolve the parliament and call new elections only in May 2011. In the first year of administration (ie 2009), GDP growth rates were negative for the first time since the financial crisis in 1997. In 2009, Thai GDP fell to -2.3% due to the financial crisis in the United States. the country saw a sharp jump in GDP growth rate of 7.8% In the first half of 2011, when the political situation in the country was relatively calm, Thai GDP grew by 3.2% and 2.7% in Q1-Q2 / 2011, respectively. naturally. Under the leadership of Abhisit Vejjajiva, Thailand's ranking fell from 26th in 2009 to 27th in 2010 and 2011, despite the success of 2010. Moreover, the country's competitiveness has deteriorated since 2009.

In the 2011 general election, the Phu Tai Party, which supports Thaksin's policies, won the general election. Thaksin's younger sister, Ms. Yingluck Shinawatra, took over as Prime Minister. Elected in July, the new government began work in late August. Before Yinglack began her duties, she discovered that some areas of the country were suffering from flooding, moreover, other areas would also soon be flooded. From July 25, 2011 to January 16, 2012, Thailand faced global flooding that affected 65 of the Kingdom's 77 provinces. As of December 2011, according to the World Bank, the total damage from the disaster was THB1.425 trillion. (USD45.7 billion). As a result, the rate of GDP growth in 2011 fell sharply to 0.1% and only in the last quarter of 2011 decreased by 8.9%. Thailand's place in the 2012 annual global competitiveness rankings fell from 27th in 2011 to 30th in 2012.

2012 was the year of the country's recovery after the 2011 floods. The Yingluck government plans to develop the Kingdom's infrastructure as a whole - from a long-term water management system to logistics. The expected GDP growth is 5.5-6.0% in 2013. Thailand's economy is said to be hit by the European Union crisis as the crisis will negatively impact both directly and indirectly the country's exports. From the first to the third quarter of 2012 (Q1-Q3 / 2012), the country's GDP growth rate reached 0.4%, 4.4% and 3.0%, respectively.

Macroeconomic Trends in Thailand's Economy

Gross Domestic Product (GDP)

Below is a table that shows Thailand's GDP growth trends from 1980 to 2011.

Year	GDP in constant prices (THB, trillion)	GDP growth rate (%)	GDP at current prices (THB, trillion)	GDP at current prices (USD, trillion)

For 31 years, Thailand's economy has grown at a significant pace. GDP at current prices shows that from 1980 to 2011, the size of Thailand's economy increased almost sixteen times in Thai Baht, or almost eleven times in US dollars. This means that Thailand's economy is ranked 31st in the world. In terms of GDP at constant prices, the statistics show that Thailand has experienced 5 different periods of economic growth. During 1980-1984, the Thai economy grew at an average annual rate of 5.4%. Following the devaluation of the baht in 1984 and the signing of the Plaza Agreement in 1985, a significant amount of foreign direct investment, mainly from Japan, increased the average GDP growth rate to 8.8% in the period 1985-1996, followed by a decline to the -5.9% in 1997-1998 During the period 1999-2006, Thailand's GDP again boasted an average growth rate of 5.0% per year. However, since 2007, the Kingdom has faced a number of challenges: a military coup in late 2006, political turmoil from 2008 to 2011, the US financial crisis from 2008 to 2009, floods in 2010 and 2011, and the eurozone crisis in 2012 year. As a result, during 2007-2011, the average growth rate of the country's GDP fell to 2.6% per year.

Gross domestic product per capita (GDP per capita)

The table below shows the data of Thai GDP per capita compared with the GDP of some countries in the East and Southeast Asia. All data, unless otherwise indicated, is in United States dollars (USD).

		Break with Thailand for 1980 (times)					Break with Thailand for 2011 (times)	Thailand GDP for 2011 after purchasing power parity calculations	GDP per capita in 2011
Malaysia
Singapore

Industry of Thailand

Agriculture, forestry and fishing

Thailand's transition to an industrial economy since 1960 has been driven by agricultural development. Back in 1980, agriculture accounted for 70% of all jobs. By 2008, agriculture, forestry and fishing contributed only 8.4% of the country's GDP, and only half of the working-age population was employed in agricultural work (even in rural areas). Thailand is the world's leading exporter of rice and a major exporter of shrimp. Other export crops include coconuts, corn, rubber, soybeans, sugarcane and tapioca.

In 1985, Thailand officially converted 25% of the country's territory into national protected areas and 15% of its forest for timber production. Protected forests were intended for conservation and recreation, while the rest of the forests were for the timber industry. In the period from 1992 to 2001, the export of round timber and sawn timber increased from 50 thousand cubic meters. meters up to 2 million cubic meters. meters per year.

Regional outbreaks of avian influenza reduced the agricultural sector in Thailand in 2004, and the December 26, 2004 tsunami wiped out the fishing industry on the west coast. In 2005 and 2006, agricultural GDP declined by 10%.

Thailand is the world's second largest exporter of gypsum after Canada, despite the government restricting gypsum exports to prevent price declines. As of 2003, more than 40 types of minerals are mined in Thailand with an annual value of about $ 740 million. However, more than 80% of these minerals are consumed domestically.

In September 2003, in order to attract foreign investment in the mining industry, the government lifted the ban on the extraction of minerals by foreign companies and reduced taxes on this industry.

Industry and manufacturing

In 2007, industry accounted for 43.9% of the gross domestic product (GDP), while occupying only 14% of the country's working-age population. This proportion is the opposite of the situation in agriculture. The volume of the industrial sector increased during 1995-2005 by an average of 3.4%. The most important subsector of industry is manufacturing, which accounted for 34.5% of GDP in 2004.

Thailand becomes the center of the automotive industry in the Southeast Asian Association market. By 2004, the production of cars reached 930 thousand units (this is twice as much as in 2001). The largest car manufacturers in Thailand are Toyota and Ford. The expansion of the automotive industry has led to an increase in domestic steel production.

Thailand's electronics industry competes with Malaysia and Singapore, while the textile industry competes with China and Vietnam. According to the World Journal, Chung SHA, President of the Thai Textile Association, said a Thai-Japanese Free Trade Agreement had been signed despite the global economic downturn.

Energy

In 2004, total energy consumption in Thailand is estimated at 3.4 quadrillion British thermal units, which is about 0.7% of total world energy consumption. Thailand is a net importer of oil and natural gas, but the government is encouraging the use of ethanol to reduce oil imports, as well as a methyl tertiary butyl ether additive to gasoline.

In 2005, daily oil consumption of 838,000 bpd (133,200 m3 / d) exceeded domestic production of 306,000 bpd (48,700 m3 / d). The total capacity of Thailand's four refineries is 703,100 barrels per day (111,780 m3 / d). The Thai government is considering the creation of regional oil refining and transportation hubs serving the needs of south-central China. In 2004, natural gas consumption was equal to 1055 billion cubic meters. ft (2.99 × 1010 m3) exceeded domestic production equal to 790 billion cubic meters. ft (2.2 x 1010 m3).

Also in 2004, coal consumption of 30.4 million small tons exceeded coal production, which was 22.1 million small tons. As of January 2007, the explored oil reserves amounted to 290 million barrels (46 million m3), and the explored reserves of natural gas were 14.8 trillion. cub. feet (420 km3). In 2003, the explored coal reserves amounted to 1,492.5 million small tons.

In 2005, Thailand consumed about 117.7 trillion. kWh of electricity. Electricity consumption increased by 4.7% in 2006 to 133 billion kWh. According to the Electricity Authority of Thailand, electricity consumption in the residential sector is increasing due to the provision of more favorable tariffs than in the industrial and business sectors. State-owned utilities and oil monopolies are in the process of restructuring.

Services sector

In 2007, the service sector, which covers spheres from tourism to banking, accounted for 44.7% of the country's gross domestic product and provides employment for 37% of the working-age population. The service sector in Thailand is quite important and competitive, which contributes to the growth of exports.

Tourism

The tourism industry contributes the most to Thailand's economy (typically around 6% of gross domestic product) than any other Asian country. Tourists come to Thailand for various reasons: mainly for recreation on the coast, although in recent years, due to constant unrest in the South, there has been a development in the tourism sector in Bangkok.

Moreover, the large influx of tourists from other Asian countries has helped to improve the Thai economy, and Bath has strengthened its position compared to most other currencies over the past two years. In 2007, about 14 million tourists visited Thailand. The Thai tourism industry includes a booming sex industry. In spite of this, the Thai government neglects the rights of sex workers and does not introduce them into labor laws, which further criminalizes sex workers and allows corrupt authorities and employers to exploit sex workers' labor.

The softening of the monetary crisis, the resumption of the rapid growth of the Chinese economy, the relatively stable domestic political situation after the Thai political crisis of 2008-2009, and the 2009 flu pandemic, which did not negatively affect tourism (as expected), changed the situation in the tourism sector for 2010. In the first six months of 2009, Thailand's tourist numbers declined by 16%, but the last four months of 2009 saw an increase in tourist arrivals with a notable increase in November and December.

Financial services industry and banking

A large number of non-performing assets of Thai banks provoked an attack on the Thai baht by currency speculators, whose activities led to the Asian financial crisis in 1997-1998. By 2003, non-performing assets were cut in half to 30%.

Despite the return of stability, Thai banks continue to grapple with the aftermath of the financial crisis, such as unrealized losses and capital shortages. For this reason, the government is considering various reforms, including the creation of a financial regulator that would be independent of the National Bank of Thailand and focus on rebuilding monetary policy.

In addition, the Thai government is trying to strengthen the financial sector by bringing together commercial, government and foreign institutions. In particular, a number of reforms were introduced, introduced in early 2004, which provided tax incentives for financial institutions that are involved in mergers and acquisitions.
These reforms were considered quite successful, according to independent experts. In 2007, Thailand had three state commercial banks and five state specialized banks, 15 Thai commercial banks and 17 foreign banks.

The National Bank of Thailand sought to stem the flow of foreign capital into the country in December 2006. This led to the largest drop in stock prices on the Thai stock exchange since the 1997 Asian financial crisis. Mass sales to foreign investors amounted to more than $ 708 million.

Labor resources

As of 2007, Thailand has a workforce of 36.9 million. About 49% are employed in agriculture, 37% in the service sector, 14% in industry. In 2005, women made up 48% of the workforce. Less than 4% of the workforce is unionized: 11% of industrial workers and 50% of civil servants are unionized.

The September 19, 2006 military coup and its aftermath had a detrimental effect on laws providing for the right for private sector workers to form and join trade unions. As a result, workers who are involved in trade union activities continue to have insufficient legal protection. According to the US Department of State, workers' unions are not sufficiently protected. Thailand's unemployment rate stands at 1.5% of the total labor force.

international trade

The United States is Thailand's largest export market and second largest importer after Japan. Despite the fact that the main markets for Thailand were North America, Japan and European countries, the increase in Thailand's export growth is directly related to the recovery of the economic situation of regional partners (neighboring countries).

The end of the financial crisis depended largely on increased exports to the United States and Asia. Since 2005, the rapid growth rate of exports of Japanese cars (especially Toyota, Nissan, Isuzu) has helped to significantly improve the foreign trade balance, since then more than 1 million cars have been produced annually. Thus, Thailand entered the top ten auto exporting countries.

Thailand's main imports are machinery and parts, vehicles, electronic integrated circuits, chemicals, oil and fuels, and iron and steel. The recent increase in the number of imported goods reflects the need to stimulate the production of high-tech goods and vehicles.

Thailand is a member of the World Trade Organization (WTO) and the Cairns Exporters Group. Thailand is part of the ASEAN Free Trade Area (AFTA). Thailand is actively implementing free trade agreements. The Sino-Thai Free Trade Agreement was adopted in October 2003. This agreement did not deal with agricultural products and was about creating a more loyal free trade area until 2010. Thailand also has a limited free trade agreement with India that came into effect in 2003, as well as a comprehensive free trade agreement between Australia and Thailand from January 1, 2005.

Thailand began free trade negotiations with Japan in February 2004 and the agreement was signed on the main points in September 2005. Negotiations on the signing of a free trade agreement between the United States and Thailand are under way, and the details of the agreement have been discussed since November 2005.

Tourism is a significant contributor to the Thai economy, and the industry has benefited from the devaluation of the Thai baht and stability in Thailand. The flow of tourists in 2002 (10.9 million) increased by 7.3% over the previous year (10.1 million in 2001).

Bangkok is one of the most prosperous parts of Thailand, and largely dominates the national economy compared to the poorer northeastern regions of the country. One of the main goals of the current Thai government, as well as that of the recently ousted Thaksin government, has been to reduce regional disparities in the country, which have been exacerbated by Bangkok's rapid economic growth and financial crisis.

Despite the fact that other regions of Thailand make little contribution to the development of the economy, with the exception of tourist areas, the government's policy to stimulate economic growth in the provincial regions of the country's east coast and in the Chiang Mai region can be considered successful. These three regions and other tourist areas play a major role in the country's economic growth, despite numerous discussions on the topic of regional development.

While some US copyright holders have noted good cooperation with the Thai government, including the Royal Thai Police and Royal Customs, Thailand entered the Priority Watch List in 2012. While the US authorities are encouraged by the renewed commitment of the new Thai government to improve the enforcement of intellectual property rights, much remains to be done to ensure that Thailand is removed from the List.

Although the Thai economy has shown moderate positive growth since 1999, its future success depends on continued financial sector reform, corporate debt restructuring, foreign investment and increased exports. At the moment, during the period of stable economic growth, the load on telecommunications, roads, electricity and ports is increasing, which may threaten with problems in the future. The growing shortage of engineers and technical skills could limit the development of the country's technical capacity and productivity.

Mergers and Acquisitions

Between 1997 and 2010, 4306 M&A deals involving Thai companies were announced for $ 81 billion. In 2010, a new record in terms of transaction value was $ 12 billion. The largest deal involving Thai companies took place in 2011, when PTT Chemical PCL merged with PTT Aromatics and Refining PCL for $ 3.8 billion.

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During 1970-2018. Thailand's GDP in current prices increased by $ 497.6 billion (68.4 times) to $ 505.0 billion; the change occurred by $ 6.4 billion due to population growth by 32.2 million, as well as by $ 491.2 billion due to GDP per capita growth of $ 7,099.0. The average annual GDP growth in Thailand is $ 10.4 billion, or 9.2%. Thailand's GDP grew at an average annual rate of 5.5% at constant prices. The share in the world increased by 0.37%. The share in Asia increased by 0.15%. The minimum of GDP was in 1970 ($ 7.4 billion). The maximum GDP was in 2018 ($ 505.0 billion).

During 1970-2018. GDP per capita in Thailand increased by $ 7,099.0 (36.5 times) to $ 7,299.0. The average annual growth of GDP per capita in current prices is $ 147.9 or 7.8%.

The change in Thailand's GDP is described by a linear correlation-regression model: y \u003d 9.3x-18 452.5, where y is the estimated value of Thailand's GDP, x is the year. Correlation coefficient \u003d 0.926. Determination coefficient \u003d 0.858.

GDP of Thailand, 1970

Thailand GDP in 1970 it was $ 7.4 billion, ranked 43rd in the world and was at the level of the Philippines' GDP ($ 7.4 billion). The share of Thailand's GDP in the world was 0.22%.

In 1970 it was 200.0 dollars, ranked 148th in the world and was at the level of GDP per capita in Congo (208.0 dollars), GDP per capita in Bhutan (207.0 dollars), GDP per capita in the Philippines (207.0 dollars), GDP per capita in Tonga ($ 203.0), GDP per capita in Grenada ($ 202.0), GDP per capita in Cameroon ($ 202.0), GDP per capita in the Solomon Islands ($ 200.0). Thailand's GDP per capita was less than the world's GDP per capita ($ 924.0) by $ 724.0.

Comparison of the GDP of Thailand and its neighbors in 1970. Thailand's GDP was 91.2% larger than that of Malaysia ($ 3.9 billion), Myanmar's GDP ($ 2.7 billion) was 2.7 times higher, Cambodia's GDP ($ 0.8 billion) was 9.6 times, Laos's GDP (0.1 billion USD) 62.0 times. GDP per capita in Thailand was higher than GDP per capita in Cambodia ($ 110.0) by 81.8%, GDP per capita in Myanmar ($ 102.0) at 96.1%, GDP per capita in Laos ($ 44.0) at 4.5 times, but was less than the GDP per capita in Malaysia (358.0 dollars) by 44.1%.

Comparison of Thailand's GDP and leaders in 1970. Thailand's GDP was less than that of the United States ($ 1,073.3 billion) by 99.3%, USSR GDP ($ 433.4 billion) by 98.3%, German GDP ($ 215.8 billion) by 96.6%, Japan's GDP (212.6 billion dollars) by 96.5%, GDP of France (148.5 billion dollars) by 95%. GDP per capita in Thailand was less than GDP per capita in the United States ($ 5,121.0) by 96.1%, GDP per capita in France ($ 2,853.0) by 93%, GDP per capita in Germany ($ 2,747.0 ) by 92.7%, GDP per capita in Japan (2,026.0 dollars) by 90.1%, GDP per capita in the USSR (1,788.0 dollars) by 88.8%.

GDP potential of Thailand in 1970. With GDP per capita at the same level as GDP per capita in the United States ($ 5,121.0), Thailand's GDP would be $ 189.2 billion, which is 25.6 times the actual level. With GDP per capita at the same level as the world's GDP per capita ($ 924.0), Thailand's GDP would be $ 34.1 billion, 4.6 times the actual level. With GDP per capita at the same level as Malaysia's GDP per capita ($ 358.0), the best neighbor, Thailand's GDP would be $ 13.2 billion, 79% more than the actual level. With GDP per capita at the same level as GDP per capita in Asia ($ 247.0), Thailand's GDP would be $ 9.1 billion, which is 23.5% more than the actual level.

Thailand GDP, 2018

Thailand GDP in 2018 it was $ 505.0 billion, ranked 25th in the world and was at the level of Argentina's GDP ($ 518.5 billion), Iran's GDP ($ 473.1 billion). The share of Thailand's GDP in the world was 0.59%.

GDP per capita in Thailand in 2018 was $ 7,299.0, ranked 99th in the world and was at the level of GDP per capita in the Dominican Republic ($ 7,470.0), GDP per capita in Dominica ($ 7,414.0), GDP per capita in Saint Vincent and Grenadines (7,362.0 dollars), GDP per capita in Serbia (7,216.0 dollars), GDP per capita in Turkmenistan (6,964.0 dollars), GDP per capita in Peru (6,827.0 dollars). GDP per capita in Thailand was less than GDP per capita in the world ($ 11,230.0) by $ 3,931.0.

Comparison of GDP of Thailand and its neighbors in 2018. Thailand's GDP was 40.8% higher than that of Malaysia ($ 358.6 billion), Myanmar's GDP ($ 72.7 billion) was 6.9 times, Cambodia's GDP ($ 24.6 billion) was 20.6 times, Laos's GDP ($ 18.0 billion) was dollars) 28.1 times. GDP per capita in Thailand was 2.8 times greater than GDP per capita in Laos ($ 2,579.0), GDP per capita in Cambodia ($ 1,513.0) was 4.8 times greater, GDP per capita in Myanmar ($ 1,351.0) ) 5.4 times, but was less than the GDP per capita in Malaysia ($ 11,191.0) by 34.8%.

Comparison of Thailand's GDP and leaders in 2018. Thailand's GDP was less than that of the United States ($ 20,580.2 billion) by 97.5%, China's GDP ($ 13,608.2 billion) by 96.3%, Japan's GDP ($ 4,971.3 billion) by 89.8%, German GDP ($ 3,949.5 billion) by 87.2%, UK GDP ($ 2,855.3 billion) by 82.3%. GDP per capita in Thailand was less than GDP per capita in the United States ($ 62,981.0) by 88.4%, GDP per capita in Germany ($ 47,993.0) by 84.8%, GDP per capita in the UK ($ 42,889.0 ) by 83%, GDP per capita in Japan (39,087.0 dollars) by 81.3%, GDP per capita in China (9,617.0 dollars) by 24.1%.

GDP potential of Thailand in 2018. With GDP per capita at the same level as GDP per capita in the United States ($ 62,981.0), Thailand's GDP would be $ 4,357.4 billion, which is 8.6 times the actual level. With GDP per capita at the same level as GDP per capita in the world ($ 11,230.0), Thailand's GDP would be $ 777.0 billion, which is 53.9% more than the actual level. With GDP per capita at the same level as GDP per capita in Malaysia ($ 11,191.0), the best neighbor, Thailand's GDP would be $ 774.3 billion, 53.3% more than the actual level.

GDP of Thailand, 1970-2018

year	GDP, USD billion	GDP per capita, dollars	GDP, USD billion	gDP growth,%	share of Thailand,%
	current prices		constant prices 1970		in the world	in Asia	in Southeast Asia
1970	7.4	200.0	7.4		0.22	1.4	19.6
1971	7.7	203.0	7.8	5.0	0.20	1.4	19.1
1972	8.5	218.0	8.1	4.1	0.20	1.2	18.8
1973	11.3	281.0	8.9	9.9	0.21	1.3	18.4
1974	14.3	346.0	9.3	4.4	0.24	1.3	17.0
1975	15.5	367.0	9.7	4.8	0.23	1.3	16.7
1976	17.7	408.0	10.6	9.4	0.25	1.3	16.3
1977	20.6	464.0	11.7	9.9	0.25	1.3	16.0
1978	25.0	551.0	12.9	10.4	0.26	1.2	16.7
1979	28.5	615.0	13.6	5.3	0.26	1.3	17.1
1980	33.5	708.0	14.2	4.8	0.27	1.3	16.2
1981	36.1	747.0	15.0	5.9	0.29	1.3	15.2
1982	37.9	770.0	15.9	5.4	0.30	1.4	15.3
1983	41.5	827.0	16.7	5.6	0.32	1.5	17.1
1984	43.3	848.0	17.7	5.8	0.33	1.5	17.2
1985	40.3	775.0	18.5	4.6	0.30	1.4	16.5
1986	44.7	843.0	19.6	5.5	0.29	1.2	19.2
1987	52.4	970.0	21.4	9.5	0.30	1.2	21.2
1988	63.9	1 164.0	24.3	13.3	0.32	1.3	22.3
1989	74.9	1 342.0	27.2	12.2	0.36	1.4	22.8
1990	88.5	1 563.0	30.2	11.1	0.38	1.6	23.7
1991	101.2	1 768.0	32.8	8.4	0.42	1.6	24.3
1992	115.6	1 998.0	35.8	9.3	0.45	1.7	24.5
1993	128.9	2 208.0	38.9	8.7	0.49	1.7	24.3
1994	146.7	2 490.0	42.1	8.0	0.52	1.8	24.2
1995	169.3	2 845.0	45.5	8.1	0.54	1.8	24.1
1996	183.0	3 043.0	48.0	5.7	0.58	2.0	23.4
1997	150.2	2 467.0	46.7	-2.8	0.47	1.7	20.3
1998	113.7	1 845.0	43.2	-7.6	0.36	1.4	22.8
1999	126.7	2 033.0	45.1	4.6	0.39	1.4	21.7
2000	126.4	2 008.0	47.1	4.5	0.38	1.3	20.3
2001	120.3	1 893.0	48.8	3.4	0.36	1.4	20.0
2002	134.3	2 096.0	51.8	6.1	0.39	1.5	19.9
2003	152.3	2 359.0	55.5	7.2	0.39	1.5	20.1
2004	172.9	2 660.0	59.0	6.3	0.39	1.5	20.2
2005	189.3	2 894.0	61.4	4.2	0.40	1.5	19.7
2006	221.8	3 369.0	64.5	5.0	0.43	1.7	19.3
2007	262.9	3 972.0	68.0	5.4	0.45	1.7	19.2
2008	291.4	4 379.0	69.2	1.7	0.46	1.6	18.3
2009	281.7	4 212.0	68.7	-0.69	0.47	1.6	17.7
2010	341.1	5 075.0	73.8	7.5	0.52	1.6	17.2
2011	370.8	5 491.0	74.5	0.84	0.50	1.5	16.1
2012	397.6	5 860.0	79.9	7.2	0.53	1.5	16.3
2013	420.3	6 168.0	82.0	2.7	0.54	1.6	16.7
2014	407.3	5 954.0	82.8	0.98	0.51	1.5	16.1
2015	401.3	5 845.0	85.4	3.1	0.54	1.5	16.3
2016	412.4	5 988.0	88.3	3.4	0.54	1.5	15.9
2017	455.3	6 595.0	91.8	4.0	0.56	1.5	16.4
2018	505.0	7 299.0	95.6	4.1	0.59	1.6	17.0

Picture. GDP of Thailand, 1970-2018

Picture. GDP per capita in Thailand, 1970-2018

Picture. GDP growth in Thailand, 1970-2018

Thailand GDP by Expenditure

Thailand's GDP by expenditure,%, 1970-2018

Indicator		1970	1980	1990	2000	2010	2018
Consumer expenses		76.5	74.6	63.1	67.7	68.0	64.9
incl.	Household expenses	64.6	61.5	53.1	54.1	52.2	48.7
	Government spending	11.9	13.1	10.0	13.6	15.8	16.2
Private investment		28.4	29.3	41.5	22.3	25.4	25.0
Net export		-4.3	-6.2	-7.5	8.4	5.7	10.3
Gdp		100.0	100.0	100.0	100.0	100.0	100.0

Picture. Thailand's GDP by spending, 2018,%

Comparison of GDP of Thailand and neighboring countries

GDP of Thailand and neighboring countries, the order of relation to the indicator of Thailand

The country	1970	1980	1990	2000	2010	2018
Thailand	0.0	0.0	0.0	0.0	0.0	0.0

In terms of GDP per capita, Thailand remains one of the less developed countries. However, the structure of Thailand's GDP resembles that of developed countries with a strong predominance of services (45% of GDP) and industry (45% of GDP). The evolving nature of the Thai economy still shows a disproportionately high share of employment in the agricultural sector. Although agriculture accounts for only 11% of GDP, it also employs almost 43% of the entire Thai labor force. The rapid development of the Thai economy over the past twenty years has been made possible by the rapid development of export-oriented industries. The export base has gradually expanded from textiles and apparel to automobiles, computers, electronics and other high value-added industries. Despite the 1997 crisis, Thailand was among the so-called Asian tigers, and the global economic crisis in 2008, the growth rate in recent years is still very high.

Thailand economy

GDP (growth) 3.6%
GDP (per capita) 8,500, - USD
GDP by economic sector:
- Agriculture - 11.4%
- Industry - 44.5%
- Service sector - 44.1%
Labor force, total - 37,780,000
- Of which 42.6% Agriculture
- Including industry 20.2%
- Including service 37.1%
Inflation 5.5%
Unemployment rate 1.2%
External debt 64.80 billion.

Rapid growth in living standards

Rapid industrial growth contributed to the growth of household incomes, and the creation of a strong domestic consumption circle, which helped further develop the service sector (especially the distribution and sale of goods).

Export orientation

Thailand's economy remains primarily export-oriented. Although Thailand exported mainly textile and agricultural products a decade ago, it is now one of the largest exporters of automobiles and parts (the world's largest exporter of pickup trucks), computer hardware and consumer electronics. Thailand is the world's largest rice exporter. It also occupies an important place in the international trade in fish products, shrimps and chickens.

Industry

The most important industries in Thailand: textiles, clothing, food and canning, electronics and electrical products including IT, automobiles, building materials, jewelry. Successful industries focused on domestic demand are iron and steel, motorcycles, cement and building materials.

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Agriculture - characteristics

Souhrnná teritoriální informace - Extensive material on Thailand from the Ministry of Foreign Affairs (PDF)

. In 1997, the GDP was $ 525 billion.

The central region is the most economically developed region. It is in the capital and its environs that there is a huge number of various trade representations, industrial enterprises, financial institutions, transport facilities and much more. In addition, fertile soil is concentrated in this area, on which various crops are grown for export and for the needs of the country's population: sugar cane, cassava, rice, corn and others.

As for, things are worse here. Less fertile land, an unfavorable climate for many crops and underinvestment inhibit the economic development of this region. Although the conditions of state programs for improving the water supply system, road construction are being implemented here, the development of the social services sector is significantly supported, it is the poorest region of the Kingdom.

The agricultural sector is partially developed in, namely, in its intermontane valleys. Earlier in this territory they were engaged in the production of timber harvesting, but over time, due to such active deforestation for agricultural land, the number of trees has significantly decreased, therefore, the state subsequently banned logging here.

It has a large number of harbors where they are engaged in fishing. Also ports and Songkhla carry out various kinds of foreign trade operations. The region produces tin and rubber.

In the 70s of the last century, the growth rate of the state's economy reached an average of 7%, and sometimes even reached 13%. In 1997, the share of GDP per capita was approximately $ 2,800. In the same year, the baht exchange rate significantly decreased due to the presence of a large economic debt of Thailand to other states.
The number of able-bodied population as of 1997 is 34 million people. Of the total, 57% of citizens are employed in the agricultural sector, 17% in the industrial sector, 15% in the public service and in the provision of services, 11% in the trade. The problem in this area is that education is at an insufficient level and there is a lack of competent and professional personnel.

Energy resources are highly dependent on oil imports. For example, in 1982 the import of petroleum products was 25%. In connection with the expansion of imports in 1996, this figure decreased by 8.8%. As in many other countries, Thailand began to go through difficult times during the energy crisis, which arose due to a significant increase in fuel prices. Then the government decided to find alternative sources and natural gas fields were discovered in the depths of the sea and the direction of hydropower began to develop more intensively. In the mid-90s, the state again became dependent on oil imports.
Almost all settlements Thailand are connected to the electrical system. Only those areas that are in the hinterland are not electrified. Most of all they consume energy in Bangkok and in settlements near the capital.

Features of agriculture in Thailand

In the 70s, the role of agriculture for the state economy began to decline. For example, in 1973, the national income from this industry was 34%, and in 1996 it dropped to 10%. Although this figure is small, it is enough to meet the nutritional needs of the country's population.
A third of the country's land is occupied by agricultural land on which various crops are grown. Half of these lands are occupied by rice crops. Although there is not so much land, after the Second World War, the harvest of grain began to gradually increase. In the 1980s, the situation improved so much that Thailand could boast of being the largest rice exporter in the world. At the end of the 90s, the harvest of rice amounted to 22 million tons, as a result of which the country took the 6th place in the world in the amount of grown and harvested cereals.

The state measures introduced in the 70s aimed at improving the state of the agro-industrial sector made it possible to raise the economy and protect it for a long time from fluctuations in world prices for rice. Exports abroad of sugar cane, cassava, corn, pineapples and other agricultural products increased significantly. The growth in production and sales of rubber was gradually increasing. Thailand also provides itself and some other countries with jute and cotton.

Livestock is of secondary importance. In some places, buffaloes are kept for plowing fields, however, gradually their functions are increasingly performed by mechanical systems for tillage. Many peasants raise chickens and pigs for sale. Poultry farming began to develop actively in the 70-80s. The North-Eastern region has long traded in the raising of cattle and their sale.

Fisheries of Thailand

Fish and fish products occupy an important place in the life of Thais, being a valuable source of protein. In freshwater bodies of water, in canals and even in rice fields, villagers are engaged in breeding and catching fish and crustaceans. As for sea fishing, it "broke" forward in the 60s, becoming the leading branch of the national economy. In the late 80s, shrimp breeding began to be actively engaged in aqua farms. At this rate, in the 90s, Thailand took the 9th place in the world in terms of the amount of grown and caught seafood for export and to meet the food needs of the local population - about 2.9 million tons of products.

Forestry in Thailand

Woodlands Thailand filled with valuable wood species. For example, there is teak on the territory of the country, the export of which was banned in 1978. Because of this, the national income fell by 1.6%, which forced the government to revise some laws and partially lift the complete restriction on log cabins. However, the felling of teak continues illegally in order to increase the territories of settlements and areas for agriculture. Already at the end of the 80s, 5 million people lived in protected forests.

Mining industry in Thailand

Thanks to the production of tungsten and tin, as well as their export, it has a good source of foreign exchange earnings, despite the fact that the share of industry takes only 1.6% of the GDP of the state economy. In addition, the Kingdom has long been known in the world for the extraction of valuable minerals - rubies, sapphires and other gems. Offshore production began in the 1980s for natural gas from subsea fields.
The manufacturing industry gained momentum in the 90s and contributed an impressive share of income to the state economy. For example, in 1996 its share was about 30%. The most developed industries are: car assembly, electronics, jewelry, petrochemical. In the 60s and 70s, the intensive development of the textile and food industries began. In addition, Thailand is engaged in the production of frozen shrimp, drinks, canned seafood, plastic, tobacco products, plywood, cement, car tires. The types of national crafts that the Thai population are proud of are lacquerware, silk fabrics, decorative woodcarving.

Foreign trade of Thailand

For a long time (from 1953 to 1997) it experienced some difficulties in the economy. There was a significant fluctuation in the foreign trade balance, so the government resorted to settlement measures through external loans and foreign tourism. Until 1997, a significant share of foreign capital was invested in the development of various infrastructures in Thailand, but the crisis, which later arose as a result of a decline in exports and an increase in external debts, undermined the Kingdom's positive reputation in the eyes of foreign investors.

Establishing the export of industrial products in the 90s made it possible to become less dependent on the supply of agricultural products, which accounts for about 25% of GDP.
The following goods are exported from Thailand to the USA, Japan and other countries:
clothing, fabrics;
electrical transformers, integrated circuits;
jewelry;
tin;
plastic products;
zinc ore;
fluorspar;
agricultural products - tapioca, jute, rice, rubber, kenaf, sorghum;
seafood.

Import is provided by the state:
consumer goods;
oil and oil products;
products of the mechanical engineering and automatic equipment industry.

To the domestic market Thailand mostly goods come from Japan. Also, the main share of foreign investment in the country's economy is investment from Japan and the United States.

Transport infrastructure of Thailand

Highways are about 70 thousand kilometers long, which allows you to get to any corner of the country. The railway system connects the capital and the central regions with cities in the north and northeast of the Kingdom, as well as other states - Singapore and Malaysia. River transport accounts for 60% of all traffic. Air transportation (from Bangkok International Airport) allows Thailand to maintain air communications with the countries of Asia, Europe, America, Australia. Major seaports of the state are Sattahip, Bangkok (the maximum number of export and import routes passes through the capital), Phuket, Kantang, Songkhla.

What is Thailand's economy based on? The first thing that comes to mind is tourism. A country of white beaches, coral reefs, cozy lagoons and coconut trees.

How else to make money here? However, the first impression of a visiting tourist is deceiving. The Kingdom of Thailand is one of the fastest growing countries in the world.

Kingdom of free people

Thailand, formerly Siam, is the only country in Southeast Asia that has never been a colony. On the one hand, it was convenient for the Europeans to have a "no-man's land" between the possessions of Great Britain and France. On the other hand, the local rulers turned out to be strong enough to keep power in their hands without sharing it with foreigners (although for this they had to give up part of the land). So the country could develop on its own - a luxury that its neighbors did not have.

Nevertheless, by the 19th century, the British monopolies were able, in fact, to seize their hands on important areas of the Thai (Siam) economy: for example, banking, tungsten and tin mining. By the start of World War II, Britain controlled up to 70% of foreign investment in the country. In general, while formally remaining independent, the state actually turned into a semi-colony. In the postwar period, the center of influence shifted from England to America. In 1950, the United States entered into an agreement with Thailand on military assistance, economic and technical cooperation. Several US air and naval bases were located on the territory of the kingdom, Thailand entered the military-political bloc SEATO (South-East Asia Treaty Organization - Southeast Asia Treaty Organization). Participation in it cost the country's budget a tidy sum, but in return Thailand received large-scale economic assistance, and American private companies invested in the development of Thai industry.

Fat years, skinny years

Foreign investment is a good impetus for development, and Thailand has staked on it. Foreign capital was welcomed in every possible way, and this policy remained unchanged even during military coups. No expropriation or nationalization. On the contrary, the inviolability of property was guaranteed by law. The authorities were generous with benefits: foreign entrepreneurs were allowed duty-free import of equipment, and their new businesses were exempt from taxes for five years.

There is, however, one "but". Investment is not only about starting new businesses. The kingdom also actively accepted financial assistance from abroad. Loans, subsidies ... the external debt by the 90s was so huge that as a result, the country simply could not pay off its obligations. It was with Thailand that the large-scale Asian crisis of 1997-98 began. The government was forced to devalue the currency: the Thai baht rate almost doubled overnight, which was a very serious blow to the Thai economy. The kingdom was not immediately able to overcome the crisis and rise to its feet again. And yet it happened.

Today the country is experiencing a heyday. Modern sectors of the economy are developing rapidly. For example, Thailand produces nearly half of all computer hard drive components. It ranks third in Asia - after Japan and South Korea - in car production. In terms of exports of electrical engineering, the kingdom is very close to the top ten supplying countries. Many major developers, including free Forex trading software, continue their expansion in Thailand. The policy of openness to foreign business is bearing fruit: global industry giants are building their factories in Thailand. And every new enterprise also means jobs. The unemployment rate here is one of the lowest in the world: less than a percent! (For comparison: in such European countries as Greece and Spain, this figure now exceeds 26%. That is, every fourth inhabitant is unemployed). Moreover, Thais work not only as ordinary workers.

In the country, 96% of the population is literate (the first six years of education are compulsory and free for everyone). The authorities are actively promoting technical education, and already in large international companies, a third of engineers are from Thailand.

Yes, and of course, agriculture is worth mentioning - although its share in the modern Thai economy is no longer as large as it used to be. Nevertheless, the kingdom remains one of the world leaders in the export of rice, as well as shrimp, coconuts, sugarcane, pineapple and corn. The climate allows farmers to take three harvests of some crops a year.

What about tourism? Of course, this industry also contributes to the general treasury. But 6%, you see, is a rather modest figure.

Margin of safety

Thailand's climate and location is not only beneficial. Alas, there are serious risks associated with them.

A terrible tragedy occurred on December 26, 2004, when an underwater earthquake in the Indian Ocean caused a powerful tsunami. A giant wave hit the coast, killing at least two hundred thousand people. Thailand was one of the countries hardest hit by the disaster. Nothing beats the grief of people who have lost their loved ones. But the economy of the country suffered colossal damage: houses, roads, communications were destroyed.

Through the efforts of local residents and volunteers from different countries, the destroyed areas were restored in the shortest possible time. From now on, buildings on the coast are built only in accordance with special requirements. The best engineers scrutinized homes that were less hit by the giant wave to determine the most durable construction options. In addition, with the assistance of foreign experts, the world's largest deep-sea tsunami early detection system was installed.

Seven years later, when nothing reminded of the tragedy on the coast of Thailand, a new attack hit the country. The 2011 flood was the worst in 50 years. A significant part of the crops and hundreds of large enterprises were flooded. The water reached both the capital and other large industrial zones. And again - numerous human casualties and destruction. The international computer market lamented the jump in prices of hard drives (you remember: half of the world's production of components for hard drives is concentrated in Thailand), but the country faced a much more global problem. It was necessary to practically rebuild the economy.

Slowly but surely there was a revival of the destroyed. Factories resumed their work. Roads were rebuilt. And now, after a sharp drop in production, the Thai economy has started to grow again and is showing a very good pace in comparison with many developed countries of the West. Although according to polls, Thais are now much less confident about the prospects for doing business in their own country than before the flood, these indicators are also gradually returning to their previous levels. No wonder Thailand belongs to the generation of new Asian countries-tigers: strong and hardy, these countries will not give up their place in the sun.