Friday, May 27, 2011

Economy of Thailand

The economy of Thailand is a newly industrialized economy. It is a heavily export-dependent economy, with exports accounting for more than two thirds of gross domestic product (GDP).

Recently, Thailand experienced GDP growth by 8.0% in 2010 making it one of the fastest growing economies in Asia and the fastest growing economy in South East Asia. The country has a GDP net worth of 9.5 trillion Baht (on a purchasing power parity (PPP) basis), or US$584 billion (PPP) making it the 24th largest economy in the world. This classifies Thailand as the 2nd largest economy in Southeast Asia after Indonesia. Despite this, Thailand ranks midway in the wealth spread in Southeast Asia as it is the 4th richest nation according to GDP per capita, after Singapore, Brunei and Malaysia. Thailand's nominal economic output as of June 2010 is $313.8 billion USD,[3] while holding some $172 billion in foreign exchange assets which ranks 11th in world. Thailand has strong automobile industry which grew by 63% in 2010 with 1.6 million cars produced ranking it as 13th in the motor vehicle producing countries in the world. Experts predict that by the year 2015 Thailand will be one of the top 10 motor vehicle producing countries in the world.[4]

Thailand's economy functions as an anchor economy for the neighboring developing economies of Laos, Burma, and Cambodia. Thailand's recovery from the 1997–1998 Asian financial crisis depended mainly on exports, among various other factors. Thailand ranks high among the world's automotive export industries along with manufacturing of electronic goods.

Tourism revenues are on the rise and contributing to about 6% of GDP. The GDP growth of Thailand was 8.0% in 2010, higher than previous highs of 5-7% under the previous civilian administration. Thailand enjoys high foreign investment and consumer confidence. Unemployment is at 1.2% as year 2010, with estimations of falling to 1% by the year 2012 therefore Thailand has one of the lowest unemployment rates in the world. Decades of economic growth reduced poverty in Thailand. Thailand enjoys one of the lowest poverty rates in Asia. In 2010, Thailand, along with Japan, South Korea, Taiwan, Brunei and Malaysia were the only countries in Asia with less than 2% of the country's total population living under $1.25 per day.

Due to rising oil and food prices, the annual inflation rate for 2010 shot up to 3.5% in July, but it will unlikely reach higher rates as oil and food prices are stabilizing and Thailand is receiving high foreign reserves and capital investment.

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