Despite numerous misconceptions, tourism is by no means the main source of income for Thailand. According to various statistics, tourism brings only 2-5% of income to the treasury.

The country's economy is largely dependent on exports - it is about 2/3 of GDP. Thailand is characterized as the second most developed economy in Southeast Asia.

In terms of richness in minerals and industrial development, it ranks 4th in the region. But, according to Thai law, all oil fields are inviolable reserves of the country. Thailand is actively developing deposits of natural gas, precious stones (the so-called "ruby belt" runs through the territory of the kingdom, there are also large deposits of sapphires and let's not forget about pearls).

Thailand has always been a major supplier of tin, but today its main export mineral is gypsum, and Thailand is the second largest exporter of gypsum in the world market. Among the minerals mined in Thailand, the main ones are fluorite, lead, tin, silver, tantalum, tungsten and brown coal. In total, Thailand is engaged in the development of more than 40 types of minerals, since 2003 the government has been more loyal to attracting foreign investment in this area: they have softened the rules for foreign companies and reduced deductions in favor of the state.

Revenues to the state treasury from fisheries today account for about 10% of all export products, and it is in foreign currency. Therefore, the authorities pay great attention to the development of fishing and the preservation of the purity of the waters and ocean flora and fauna. So, with the introduction of industrial fishing by trawling, the sea catch has already reached 1 million tons against 146,000 non-technological fishing. Today, this makes Thailand the third largest supplier of ocean and sea fish in the world.

Traditionally, seafood and fish are the basis of the Thai national cuisine, as is rice. Naturally, fishing has become the most developed in coastal cities, as well as the production of shrimp sold for export. The largest suppliers of ocean fish today remain the coasts of the Gulf of Thailand and the Andaman Sea (Phuket and nearby islands).

Thailand is the world's leading exporter of shrimp, coconut, corn, soybeans and sugar cane. Despite the solid profits from the trade in gifts of nature, the government of the country passed a law according to which 25% of the forest in the country is subject to protection, and only 15% to timber production. State-protected forests have been declared national parks or recreation areas, and those available for felling are actively used in the woodworking industry. Teak furniture, rattan wicker furniture, cutlery made from bamboo or pressed coconut, a huge selection of souvenirs from various tree species - this is only a small part of the production, but a noticeable component of tourist souvenir shops.

In the south of the country, the cultivation of Brazilian Hevea trees flourishes, the sap of this tree provides Thailand with 1st place in the export of rubber and latex. Agriculture also provides part of the income (65% of the population is still involved in this area). Thailand is a leading supplier of rice to the world market.

But the lion's share of income comes from the automotive and electronics industries. Thailand's industry accounts for about 43% of the gross domestic product, despite the fact that it employs only 14.5% of the workforce. The expansion of automobile production has also had a positive effect on other industries - for example, thanks to it, steel production has risen sharply. Thailand currently ranks 3rd after Japan and South Korea in Asia for the production of automobiles. And in the production of pickups based on jeeps, Thailand ranks second in the world (after the United States). Almost every car on the roads in Thailand is assembled (and very often completely produced) in this country. Car export reaches 200 thousand per year.

Other industries face strong competition from manufacturers in similar segments - Thailand's electronics face stiff competition from Malaysia and Singapore. But still, Thailand is firmly in the 3rd place in the world in the production of hard drives and microcircuits.

And returning to tourism, this is mainly the income of residents of tourist areas. The government is actively developing this area of ​​the economy, according to the Tourism Authority of Thailand, about 20 million foreign tourists visited Thailand in 2011, which is 19.84 percent more than in 2010. The Russian tourist is far from being the leader in these statistics, but takes a confident 4th place after Malaysia, China and Japan.

Tourists from Asia, first of all, are attracted by historical, cultural and natural attractions in Bangkok and its environs, while residents of Western countries prefer the southern part of Thailand (Phuket, Koh Samui) with its beaches and islands.

A feature of tourism in Thailand is the ever-increasing number of people coming from the northern latitudes for a long-term "wintering". They usually stay in Thailand from November to April, which is the most climatically favorable time of the year.

Thailand is a developing agro-industrial country whose economy is heavily dependent on foreign capital. The basis of the economy is agriculture (provides about 60% of the gross national product) and a relatively developed mining industry.

Thailand leads by a wide margin in terms of economic power among the countries of Indochina and slightly loses to Malaysia, Singapore and Indonesia and, if we take the entire Southeast Asian region as a whole. The country stands firmly on its feet and occupies a position in the world comparable to Russia, in the list of leading countries with an average level of development.

The capital of the country, if not completely glamorous, like Kuala Lumpur or Singapore, but very, very eager to conform. Thailand is the Asian dragon of the so-called "second wave". The first were Korea, Japan, Taiwan and Hong Kong in the 60-70s. In the 1980s and 1990s, they were followed by Thailand, Malaysia, Singapore and Indonesia. Prem Tinsulanon's reforms were based on low taxes and attracting investment. Therefore, under him, the production of electronics, clothing and footwear under the brand name of well-known Japanese and Korean brands flourished.

As well as the completion of the continuous electrification of the country, the construction of highways, ports and the terminal of Don Mueang International Airport. Thailand's GDP is $150 billion. This is the 33rd place in the world, about a third of Russia's GDP. GDP per capita - $2309, GDP PPP - $7580. The growth rate of the Thai economy slowed down in 2005, but still averages 3-4% per year. But, as is usually characteristic of countries with an average level of development, the distribution of wealth is very uneven: there are beggars and there are “new Thais”. On the other hand, there are very few beggars (less than 10%). The minimum wage in the country is 150B per day (about $3).

The monetary unit of Thailand is the baht (THB), which is divided into 100 satang. $1 = 45 V, but for convenience, you can round up to 50. There are different baht: 20.50, 100, 500 and 1000. There are coins of 1, 5 and 10 baht. The most popular banknotes are 100 V (red) and 50 V (blue). In all tourist places they like cash dollars, but they do not accept old, shabby ones. ATMs are everywhere, but cash is preferred to credit cards. There are many exchangers, the best rate is in large shopping centers and airports.

The central region of the country is richer and more powerful than the rest of the regions. Most industrial enterprises, banks, trading companies and transport facilities are concentrated in Bangkok and its environs. The most fertile lands of Thailand are confined to the Central Plain. Rice, sugarcane, corn, and cassava are grown here. This area generates a disproportionate share of the national income.

The economic development of the Northeast is constrained by poor soils, a relatively arid climate, and a lack of financial resources. Despite the implementation government programs road construction, improvement of the water supply system and strengthening of social services, it is not possible to overcome the backwardness of the region, and it is the poorest in the country.

In northern Thailand, agriculture is only possible in the valleys. Since ancient times, timber has been the main commodity here, but due to the spread of agriculture and excessive logging, the forested area has decreased. Currently, industrial logging is prohibited on public lands.

The south of the country, which occupies only 1/7 of its territory, faces the sea with a wider front than all other regions combined. Therefore, there are many small fishing harbors. Foreign trade operations are conducted through the main local ports of Songkhla and Phuket. The main products of this region are rubber and tin.

Thai industry

The share of the mining industry in GDP is only approx. 1.6%, but this industry remains a significant source of export foreign exchange earnings. Thailand is one of the leading suppliers of tin and tungsten to the world market. Some other minerals are also mined on a small scale, among them gems such as rubies and sapphires. In the 1980s, the development of natural gas fields began in coastal waters.

The manufacturing industry developed rapidly in the 1990s and became the most important sector of the economy, in which in 1996 almost 30% of GDP was created. Such branches of industry as electronic, petrochemical, car assembly, jewelry are developed.

In the 1960s and 1970s, enterprises of the textile and food industries emerged (including the production of soft drinks, freezing shrimp and canned seafood). The output of tobacco products, plastics, cement, plywood, car tires continues to grow. The population of Thailand is engaged in traditional handicrafts - woodcarving, the production of silk fabrics and lacquer products.

Industry now provides 44% of Thailand's GDP. Technological industries are at the forefront: assembly of computers, other electronics, assembly of cars. Car factories are located in special offshore zones. The domestic market is dominated by the Toyota and Isuzu concerns. The country's achievements in the chemical industry (petrochemistry, pharmaceuticals) are significant, and the traditionally strong textile industry (Thailand is the largest exporter of silk). We should not forget about tourism (6% of GDP). This industry is aimed at pumping money out of visiting farangs as much as possible. At the provincial level, various handicrafts are very developed. Prime Minister Thaksin even put forward the slogan: "One village - one product", meaning by this the centralized specialization of local industry. Thai subsoil is primarily tungsten and tin (3rd largest in the world in terms of reserves), which are famous for their purity and the absence of impurities. As already noted, the forests were up to a fig, but they cut it too intensively (27 million cubic meters annually) and in the end they decided not to cut it anymore, but to buy it in Burma and other neighboring countries. There are also many fish in Thailand (or rather, in the seas surrounding it). And here Thailand does not miss its own, constantly increasing its "fishing muscles" - about 4 million tons are caught a year, canned fish are distributed all over the world, including to Russia. There is also such a thing as precious stones - according to them, Thailand, together with its neighbor Burma, is one of the world leaders.

Agriculture in Thailand

Since the mid-1970s, there has been a decrease in the role of agriculture, in which in 1996 only 10% of national income was created against 34% in 1973. Nevertheless, the industry satisfies domestic demand for food.

Approximately one third of the entire territory of the country is occupied by cultivated land, of which half is reserved for rice crops. Peasant farms suffer from a lack of land, but in the period after the Second World War they managed to achieve a gradual increase in grain harvests. Since the early 1980s, Thailand has become the world's largest exporter of rice, and in the late 1990s, in terms of gross rice harvest (22 million tons), it ranked 6th in the world.

Government actions aimed at diversifying the sectoral structure of agricultural production in the 1970s contributed to the growth of yields and increased sales abroad of a number of agricultural products, including cassava, sugar cane, corn and pineapples. The rise, although slow, was observed in the rubber industry. All this allowed the Thai economy to react less painfully to fluctuations in world rice prices. Cotton and jute are also grown to a significant extent.

Animal husbandry plays a subordinate role. For plowing the fields they keep buffaloes, which are gradually being replaced by relatively inexpensive small-scale mechanization. Most peasants breed pigs and chickens for meat, and commercial poultry farming grew especially rapidly in the 1970s and 1980s. In the Northeast, raising cattle for sale has long been an important source of income for local residents.

In the Thai diet, fish is the main source of protein. For rural residents, freshwater fish and crustaceans are especially important, which are caught and even bred in paddy paddy fields, canals and reservoirs. Since the 1960s, sea fishing has become one of the leading sectors of the national economy. Since the late 1980s, shrimp farming has become very important. In the late 1990s, Thailand ranked 9th in the world in terms of seafood catch (approx. 2.9 million tons).

The forests of Thailand feature many valuable hardwood tree species, including teak. The export of teak was banned in 1978, at which time the contribution of the newly important industry to the national income was reduced to 1.6%. However, the volume of logging did not decrease much, which forced in 1989 to take urgent legislative measures to almost completely limit them. Nevertheless, illegal logging continues, including for the purpose of expanding the areas of agricultural land and settlements. Back in the late 1980s, approx. 5 million people.

Thailand foreign trade

Between 1952 and 1997, Thailand experienced a constant trade deficit, which had to be covered by income from foreign tourism and foreign loans. After the end of the Cold War, loans began to come mainly from foreign private banks and investors. Until 1997, Thailand was considered a reliable and attractive country for investment, but then this reputation was undermined as a result of a crisis caused by accumulated debt obligations, as well as a decline in exports.

Thanks to the development of export industries in the 1990s, Thailand is now less dependent on the supply of its agricultural products to the world market, which generates approx. 25%. The main export items are computers and components, integrated circuits, electrical transformers, jewelry, ready-made clothing, fabrics, various plastic products, tin, fluorspar, zinc ore, agricultural products (rice, rubber, tapioca, sorghum, kenaf, jute), seafood. Imports consist mainly of machinery and equipment, consumer goods, oil and oil products.

Exports go primarily to the United States, followed by Japan. The latter is the main supplier of goods for the domestic market of Thailand. The bulk of investment comes from the US and Japan.

Thailand's exports are based on two pillars: electronics - computers produced under the licenses of world monsters, and traditional rice. Among contractors, the United States (22%), Japan (14%), other Asian countries prevail, among Europeans the UK, the Netherlands and Germany excel (4% each). Thailand's main import product is fuel and heavy equipment. Fuel comes from Brunei and Indonesia, equipment from the US and Japan. Thailand's external debt is large ($50 billion), but there is a tendency to reduce it. In absolute terms, Thailand's export-import fluctuates between $110-120 billion per year. The Thai army has 300,000 men and the king is the supreme commander. The army has not waged serious wars for a very long time, since the Burmese invasion (late 18th century), and the principle of the country's foreign policy is to avoid all conflicts, from which it is possible. The functions of the army are directed more towards the interior of the country: the suppression of any partisans on the borders and the maximum participation in the division of the political and economic pie. Becoming a military man in Thailand means in 90% of cases economically providing for a family. But there is not enough for everyone, so skirmishes are very common, both military and civilian, and between the military. In terms of weapons and joint maneuvers in Thailand, the orientation towards the United States continues.

Thailand transport

Thailand's railways are approx. 4 thousand km and connect Bangkok with the main cities in the north and northeast of the country, as well as with Malaysia and Singapore. A developed system of roads (over 70 thousand km long) allows you to get to any corner of Thailand. Of great importance for internal communication is water river transport, which provides approx. 60% of traffic. Through the international airport in Bangkok, Thailand is connected to many countries in Europe, Asia, America and Australia with daily scheduled flights. There is regular air communication with many cities of the country. The main seaports are Bangkok, Sattahip, Phuket, Songkhla, Kantang. Most imports and exports pass through the port of Bangkok.

Lives solely on tourism and ... latex. Fortunately, this is not the case. Tourism is important in the country's economy, but its share in the country's GDP is at the level of 10%, but from year to year the share of tourism in the Thai economy is increasing. Thailand has a powerful industry focused primarily on exports. The country pursues a policy of attracting foreign capital, a large number of Japanese enterprises, ranging from the electronics industry to the automotive industry and the metallurgical industry.

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 a lot of its own oil, so oil is mainly purchased from the Emirates and Indonesia, Thai oil companies begin to actively engage in oil production in neighboring Myanmar.

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

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

Let's not forget about agriculture - Thailand until recently was the largest exporter of rice (until 2013), is important in the export of fruits and seafood. Developed food industry.

General information

Thailand has an industrial economy developing country. The economy is largely dependent on exports, it is exports that make up two-thirds of the gross domestic product (GDP). In 2012, according to the National Economic and Social Development Authority, Thailand's GDP was 11.363 trillion baht (USD365 billion) at current market prices. In 2012, the Thai economy grew by 6.4% with 3% inflation, and the current account surplus was 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 services, their combined share in GDP is 39%. Many mistakenly believe that agriculture is the main source of GDP. To date, the share of agriculture is only 8.6%, lower than in the sectors of trade, logistics and communications, 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 places of industrial decline, thereby increasing the economic competitiveness of the regions, which has a positive effect on the Thai economy.

Thailand is the second largest country in Southeast Asia after Indonesia. However, the country's GDP per capita in 2012 is quite low, around $5,382. Judging by the statistics on the size of GDP per capita, the Kingdom comes after such Southeast Asian countries as Singapore, Brunei and Malaysia. As of January 4, 2013, Thailand holds an amount of USD180.9 billion in monetary base and international reserves, which puts the country in second 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 recognized Thailand as "the most successful example of the correct development of the country". Thailand is currently an upper-middle-income country, despite the fact that per capita gross national income (GNI) is only USD 4,451 and the Human Development Index (HDI) is only 103rd. Over the past 22 years, the share of the population with an income below the subsistence level has decreased 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 at 3.2% and the policy-driven interest rate is 2.75%.

Historical overview of the development of the Thai economy

Period before 1945

Thailand, formerly known as Siam, has been open to foreign contact since pre-modern times. Despite the lack of resources in Siam, the seaports and cities located 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 trading centers in Asia.

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

Despite this, Thailand's internal trade developed at a slow pace. Some scholars suggest that slavery was the cause of internal stagnation. The fact is that most of the male population in Siam were in the service of court officials, while their wives and daughters were engaged in petty trade in local markets. In the end, 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 of Chinese 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 top rice exporters in the world. However, until 1945, Siam's economy suffered greatly from the Great Depression in the 1920s and 1930s, which was the main cause of the Siamese Revolution in 1932.

Period after 1945 to 1955

In the post-war era during the Cold War, Thai policy, both domestic and foreign, had a significant impact on economic development. From 1945 to 1947, before the Cold War began, the Thai economy suffered greatly from the effects of World War II. During the war, the Thai government, led by Field Marshal Luang Phibulsongkram, allied 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 Western allied countries for free. Restoring the country's economy has become problematic. In order to deal with this problem, the Thai government has established the Rice Trade Supervision and Control Department (from the English - the 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, Thailand's short period of democracy 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 turning point for the country. Already in April 1948, a coup took place in the country, as a result of which Field Marshal Luang Phibulsongkram took the post of prime minister. No sooner had Luang Phibulsongkram been appointed to his post, he realized that a struggle for power was brewing between lower-ranking officials. The field marshal began an active anti-communist campaign in order to maintain his political power, while enlisting the support and assistance of the United States. As a result, since 1950, Thailand began to receive both military and economic assistance from the United States. Concerning economic policy, the Phibulsongkram government created many state-owned enterprises, which were considered the benchmark of economic nationalism in the country. During this period, the state (or, in fact, the officials) is engaged in the distribution of capital in the Kingdom in such a way that all large investments were under the control of the government - this is why Dr. Ammar Siamwalla, one of Thailand's most famous economists, calls this period "bureaucratic capitalism."

Period from 1955 to 1985

However, in 1955, Thailand's economy was undergoing tremendous changes. Both domestic and foreign policy played an important role in this process. By 1955, the internal struggle for power between the two main factions of the Phibula regime had become most bitter (on the one hand, General Phao Sriyanonda (Phao Sriyanonda) and General (later Field Marshal) Srisdi Dhanarajata (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 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 through the development of the national economy. To achieve this, he again turned to the United States with a request to provide, first of all, economic, and not military assistance. This request was met by the US government with an unprecedented degree of economic aid to the Kingdom between 1955 and 1959. In addition to this, the Phibulsongkhram government made some important changes in financial and monetary policy. One of these changes was the abolition of the system of multiple exchange rates and the introduction of a fixed unified system exchange rate. This system used in the Kingdom until 1984. However, the Phibulsongkram government decided to get rid of international influence in the field of trade, for which secret negotiations were held with the government of the People's Republic of China. This situation angered the United States.

Despite numerous attempts to maintain his power, Field Marshal Luang Phibulsongkram could not hold on to the post of prime minister. On September 16, 1957, Field Marshal Srisdi Dhanarajatha successfully staged a military coup, ousting Field Marshal Luang Phibulsongkram, Field Marshal Phin Choonhavan and General Phao Sriyanonda (Phibul-Phin-Phao) from the Thai government. In terms of economic development, the government under Srisdi not only continued what Phibul started in 1955, but succeeded in doing so. The new government won the full support of the United States through its decision to end all relations with the People's Republic of China and 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 were not related to the infrastructure of Thailand were privatized. During this period, a number of important economic institutions were established, such as the Office of the Budget, the National Economic and Social Development Authority, and the Investment Authority of Thailand. Since 1961, the Plan for Economic and Social Development began to be 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. According to a quotation from an article by former President Richard M. Nixon (Foreign Affairs, 1967), Thailand has experienced rapid economic growth since 1958, with an average growth rate of 7% per year.

However, between 1970 and 1984, Thailand suffered from a host of economic problems: a lack of US investment, a current account deficit, a sudden rise in oil prices, and inflation. Domestic politics was unstable. Moreover, international politics also suffered due to the unfriendly environment of the Kingdom. As soon as Vietnam occupied Democratic Kampuchea (Cambodia) on December 25, 1978, Thailand became a country with a "real" front line against communism. At that time, Thailand was surrounded by three hostile communist countries of Indochina, as well as socialist Burma under General Ne Win. Successive governments tried to solve the economic problems by passing a series of laws, some of which (for example, encouraging 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 that the state was facing at that time were taken by the government of General Prem Tinsulanonda, who was in power from 1980 to 1988. Between 1981 and 1984, the Thai government devalued national currency, Thai baht (THB). The first time was on May 12, 1981, when the government devalued the baht by 1.07%, from THB20.775/USD to THB21/USD. Second time - 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(with the US dollar) to 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, Great Britain, France and West Germany signed the Plaza Agreement on coordinated foreign exchange interventions, in which the US dollar depreciated against Japanese yen and the German mark. As the US dollar accounted for 80% of Thailand's currency basket, the Thai baht also depreciated. These developments 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 valued since 1985. Thailand became more democratic in 1988 after General Prem Tinsulanonda resigned and was succeeded by Major General (later General) Chatichai Choonhavan, the first Prime Minister of Thailand since 1976 to be elected by democratic standards. Moreover, the III Indochina War was coming to an end, the Vietnamese troops finally left Cambodia in 1989. All this had a beneficial effect on the development of the Thai economy.

After the devaluation of the baht in 1984 and the Plaza Accord in 1985, Thailand's private sector began to grow, although the government sector was still in a bad situation due to a number of financial constraints. The result of the success of international trade and the influx of foreign direct investment, mainly from Japan, was a decade of prosperity for the 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 year, with a maximum of 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 remain in this decade. From 1987 to 1996, Thailand ran a huge current account deficit averaging 5.4% of GDP per year, and it continues to grow. In 1996, the current account deficit was 7.887% of the country's GDP (or USD14.351 billion). Another problem was the lack of capital in the country. The Chuan Likpai government (September 1992-May 1995) tried to solve this problem by introducing a system of international bank branches in 1993 with preferential treatment(BIBF) for Thai financial institutions. This innovation unexpectedly led to even more serious economic problems. As a result, banks with a BIBF license received a loan under low interest from foreign financial institutions and then provided loans with higher interest rates to Thai institutions. As a result, by 1997, the country's external debt rose to USD109.276 billion, 65% of which was 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 "soap 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 - the speculative attack. Being aware of all the economic problems the Kingdom was facing and the fact that Thailand was using 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, the Baht came under pressure, on the one hand, from the cash market and futures commodity market, on the other side. In the spot market, the situation was as follows: in order to accelerate the process of devaluation, speculators took a loan in Baht and provided it for US dollars. In the derivatives market, speculators, confident that the baht would soon be devalued, bet on the situation by entering into 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. Dr. Virapong Ramangkul, one of Prime Minister Chavalit Yongchaiyudh's economic advisers, called for the baht to be devalued. The situation of the baht was so precarious that General Prem Tinsulanonda, the respected former prime minister of the country, asked General Chavalit Yongchayudha to consider Dr. Verapong Ramangkul's proposals with great care. However, General Chavalit Yongchayudha ignored this request and instead relied on National Bank of Thailand, which was led by Governor Rerngchai Marakanond, who ended up spending more than USD24,000 billion (about two-thirds of the Kingdom's international reserves) to maintain the position of the baht. On July 2, 1997, Thailand had only USD2.850 billion in international reserves and, therefore, could not fight against speculative attacks and artificially maintain the value of the Thai baht. On the same day, Rerngchai Marakanond announced the depreciation of the national currency. This was the beginning of the Asian financial crisis 1997.

Economy of Thailand from 1997 to 2006

In short, the Thai economy collapsed from the 1997 Asian financial crisis, which started in Bangkok. A few months later, the value of the Thai Baht dropped from THB25/USD to a low of THB56/USD. The Stock Exchange of Thailand (FBT) sharply reduced the number of transactions by 1,753.73 points in 1994 to 207.31 points in 1998. In terms of national currency, the country's GDP declined 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 amount of GDP that it had in 1996. The unemployment rate almost tripled, from 1.5% of the total labor force in 1996 to 4.4% in 1998. The sharp and sudden depreciation of the baht directly affected the size of external debt, which had 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 left Thailand with only USD2.850 billion in international reserves, so the Thai government had to borrow from the International Monetary Fund (IMF). As a result, Thailand received USD17.2 billion in bilateral and multilateral aid.

The crisis also had a direct and indirect impact on the political situation in Thailand. The direct impact was that General Chavalit Yongchayudh, then Prime Minister of the Kingdom, resigned under pressure on 6 November 1997 and was replaced by the head of the opposition, Chuan Leekpai. The government led by Chuan Leekpai (in power from November 1997 to February 2001) attempted to economic reforms dictated by the philosophy of neoliberal capitalism of the IMF. His government pursued a very strict policy of financial and monetary restraint, such as maintaining high interest rates while cutting government spending. In addition to this, the Chuan Likpai government issued 11 laws, which were 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 a positive GDP growth rate for the first time since the beginning of the crisis. However, the economic measures of Chuan Leekpai's government have drawn numerous critical comments. For example, many critics said that the government needed to find another source of loans and would not trust the IMF. The cuts in government spending actually harmed the economic recovery. Unlike the economic problems in Latin America and Africa, the Asian financial crisis started in the private sector. Clear IMF measures should not have been applied everywhere to solve various kinds of problems. Positive GDP growth rates in 1999 were seen only due to the fact that in the previous two years the rates had only decreased, for example, -10.5% in 1998. In fact, the country's GDP reached the 1996 mark only in 2002 (in terms of US dollars, only by 2006). Despite all the achievements, the contribution to the development and stabilization of the Thai economy by the Chuan Leekpai government remains controversial.

The most important indirect influence during the financial crisis on the Thai political situation was Thaksin. Due in large part to the (alleged) failure of the Chuan Leekpai 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 Leekpai and assumed 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 restored a stable economy and was able to pay off all IMF debt by July 2003 (two years ahead of schedule). The success of his economic policies was one reason why Thaksin's party scored another landslide victory over the Democratic Party in the 2005 elections.

However, the second term of the Thaksin administration was not as successful as the first. On December 26, 2004, the Indian Ocean tsunami hit, negatively affecting Thai GDP growth in the first quarter of 2005 (Q1 / 2005). In 2005, there is a phenomenon of "Yellow Shirts" (coalition against the government of Thaksin). In 2006, the political situation in Thailand became so tense that Thaksin finally dissolved parliament and called for a general election amid fierce criticism. In 2006, General Elections were scheduled for April, but the main opposition parties refused to take part. Thaksin's party won again, but the election was declared invalid 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 a constitutional monarchy, led by General Sonthi Boonyaratglin, staged a coup d'etat, ousting Thaksin while he was in New York preparing to report to the United Nations General Assembly. However, in the last year of the Thaksin Government, the country's GDP grew by 5.1%. Overall, Thailand's place in the Annual Global Competitiveness Index rose significantly from 31st in 2002 to 25th in 2005 before falling to 29th in 2006.

Thailand's economy from 2006 to today

After the coup, Thailand has experienced an economic downturn due to political events. From the last quarter of 2006 (Q4/2006) to 2007, Thailand was under a military junta led by General Surayud Chulanont, who was appointed Prime Minister in October 2006. In 2006, GDP growth rates decreased quarterly: 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 Index has dropped significantly from 26th in 2005 to 29th in 2006 and then to 33rd in 2007. Thaksin's plan for massive infrastructure investment was not mentioned until 2011, when his younger sister, Yingluck Shinawatra, began working in the country's 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 Abhisit Vejjajiva's Democratic Party. This triumph of the People's Party is often considered the third victory of Thaksin's policies in the national general elections.

However, with the coming to power of the People's Party, the country fell into a period of political upheaval. Due to the financial crisis of US businesses in the last two quarters of 2008 (Q3-Q4/2008), Thai GDP growth in 2008 fell by 2.5%. Although Thailand's GDP grew by 6.5% in the first quarter of 2008 (Q1/2008), the People's Democratic Alliance (Yellow Shirts) reconvened in March. In addition, Thailand's place in the annual Global Competitiveness Index has risen significantly from 33rd in 2007 to 27th in 2008. The situation worsened when the Yellow Shirts occupied 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 18 September 2008. While the Yellow Shirts occupied Government House, preventing the administration from working on a regular basis, the US financial crisis reached its peak. As a result, the GDP growth rate decreased 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, the Yellow Shirts, protesting the appointment of Somchai Wongsawat, seized two Bangkok airports (Suvarnabhumi and Don Muang). This harmed not only the country's economy, but also the image. On December 2, 2008, the Constitutional Court of Thailand ordered the dissolution of the People's Party and the resignation of 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 it came to power in 2008, as it was formed in a military regime.” As a result, the new government faced problems related not only to the financial crisis of US enterprises, but also to the activities of the Red Shirts, who denied the appointment of Mr. Abhisit Vetchachiva to the post of prime minister and called for new elections to be held soon. parliament and call new elections only in May 2011. In the first year of its administration (i.e. 2009), GDP growth was negative for the first time since the financial crisis of 1997. In 2009, Thai GDP fell to -2.3% due to the financial crisis in the US In 2010, the country saw jump GDP growth rate by 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. Under the leadership of Abhisit Vetchachiev, Thailand's ranking fell from 26th place in 2009 to 27th in 2010 and 2011, despite the success of 2010. Moreover, the country's competitiveness has been deteriorating since 2009.

In 2011, the Phu Tai Party, which supported Thaksin's policies, won the general election. The post of prime minister was taken by Thaksin's younger sister, Ms. Yingluck Shinawatra. Elected in July, the new government began work at the end of August. No sooner had Yingluck begun her duties than she discovered that some areas of the country were suffering from flooding, moreover, other areas would soon be flooded as well. From July 25, 2011 to January 16, 2012, Thailand experienced 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 amounted to THB1.425 trillion. (USD45.7 billion). As a result, the GDP growth rate in 2011 fell sharply to 0.1% and only in the last quarter of 2011 it 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 a period of recovery for the country after the 2011 floods. The Yingluck government plans to develop the infrastructure of the Kingdom 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 reportedly hit by crisis European Union, since the crisis will have a negative impact both directly and indirectly on 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 the Thai economy

Gross domestic product (GDP)

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

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

For 31 years, Thailand's economy has developed at a significant pace. GDP at current prices shows that between 1980 and 2011, the size of the Thai economy expanded nearly sixteen times in Thai baht, or nearly eleven times in US dollars. This means that Thailand's economy ranks 31st in the world. As for GDP at constant prices, it can be seen from the statistics that Thailand has experienced 5 different periods economic growth. During 1980-1984, the Thai economy grew by an average of 5.4% per year. After 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 -5.9% in 1997-1998. In the period 1999-2006, Thailand's GDP once again boasted an average growth rate of 5.0% per annum. However, starting in 2007, the Kingdom faced a number of challenges: a military coup in late 2006, political upheaval from 2008 to 2011, the US financial crisis from 2008 to 2009, floods in 2010 and 2011, and the Eurozone crisis in 2012. As a result, during 2007-2011, the country's average GDP growth rate fell to 2.6% per year.

Gross domestic product per capita (GDP per capita)

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

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

Thailand industry

Agriculture, forestry and fishing

Thailand's transition to an industrial economy since 1960 has been driven by the development of agriculture. 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 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 conservation areas, and 15% of the forest for timber production. Protected forests were intended for their conservation and creation of recreation areas, while the rest of the forests were for the timber industry. Between 1992 and 2001, exports of roundwood 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 tsunami on 26 December 2004 wiped out the fishing industry on the west coast. In 2005 and 2006 years of GDP agriculture fell by 10%.

Thailand is the world's second largest exporter of gypsum after Canada, despite the fact that the government is restricting gypsum exports to prevent prices from falling. As of 2003, over 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 mining by foreign companies and reduced taxes on this industry.

Industry and production

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

Thailand becomes the center of the automotive industry in the market of the Association of Southeast Asian Nations. By 2004, car production reached 930,000 units (twice as many as in 2001). The largest automakers 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, the president of the Thai Textile Association, Chung SHA, said that despite the global economic downturn, a Thai-Japanese free trade agreement has been signed.

Energy

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

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

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

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

Services sector

In 2007, the service sector, which ranges from tourism to banking, accounted for 44.7% of the country's gross domestic product and employs 37% of the working 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 of tourism in Bangkok.

Moreover, the large influx of tourists from other Asian countries has helped improve the Thai economy, and the baht 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. Despite this, the Thai government neglects the rights of sex workers and does not include them in labor laws, which contributes to the criminalization of sex workers and allows corrupt authorities and employers to exploit the labor of people employed in the sex industry.

Monetary Crisis Eases, Rapid Growth Resumes Chinese economy, relatively stable domestic political situation after the 2008-2009 Thai political crisis, and the 2009 influenza pandemic, which did not adversely affect tourism (as expected), changed the situation in the tourism sector for 2010. In the first six months of 2009, Thailand saw a 16% decrease in tourist numbers, but the last four months of 2009 saw an increase in tourists with a notable increase in November and December.

Financial Services Industry and Banking

A large number of dormant 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 halved to 30%.

Despite the return of stability, Thailand's banks continue to struggle with the effects of the financial crisis, such as unrealized losses and lack of capital. For this reason, the government is considering various reforms, including the creation of a body financial regulation, which would be independent of the National Bank of Thailand and focused on restoring 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 carried out, introduced at the beginning of 2004, which provided tax incentives for financial institutions that are involved in mergers and acquisitions.
These reforms were recognized as quite successful, according to independent experts. In 2007, there were three state-owned commercial banks and five state-owned specialized banks in Thailand, 15 Thai commercial banks and 17 foreign banks.

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

Human Resources

According to 2007 data, the labor force in Thailand is 36.9 million people. About 49% are employed in agriculture, 37% in the service sector, and 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 military coup of 19 September 2006 and its aftermath had a detrimental effect on laws providing for the right of private sector workers to form and join trade unions. As a result, workers who participate in trade union activities still have insufficient legal protection. Workers' unions are not well protected, according to the US State Department. The unemployment rate in Thailand is at 1.5% percent 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 North America, Japan and European countries were the main markets for Thailand, the increase in Thailand's export growth is directly related to the recovery of the economic situation of regional partners (nearby countries).

The end of the financial crisis was largely dependent on increased exports to the United States and Asia. Since 2005, the rapid growth in the export of Japanese brand 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 car 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 China-Thai Free Trade Agreement was adopted in October 2003. This agreement did not cover agricultural products and was to create a more loyal free trade zone 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 started free trade talks with Japan in February 2004 and the agreement was signed on the main points in September 2005. Negotiations regarding the signing of a free trade agreement between the United States and Thailand are ongoing, 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 depreciation of the Thai baht and stability in Thailand. The flow of tourists in 2002 (10.9 million) increased by 7.3% compared to the previous year (10.1 million in 2001).

Bangkok is one of the most prosperous parts of Thailand, and is largely dominated by national economy compared to the poorer northeastern regions of the country. One of the main goals of the current Thai government, as well as the task 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 East Coast of the country and in the Chiang Mai area can be considered successful. These three regions and other tourist areas play a major role in the economic growth of the country, despite numerous discussions on the topic of regional development.

Although some US copyright holders have noted good cooperation with the Thai government, including the Royal Thai Police and Royal Customs, Thailand was placed on the Priority Surveillance Country List in 2012. The US authorities are encouraged that the new government of Thailand has reaffirmed its commitment to improving the protection of intellectual property rights, but more needs to be done to remove Thailand from the List.

Although Thailand's economy has posted moderately positive growth since 1999, its future success depends on continued financial sector reform, corporate debt restructuring, attracting foreign investment and boosting exports. At the moment, during a period of strong economic growth, the load on telecommunications, roads, electricity and ports is increasing, which may threaten problems in the future. A growing shortage of engineers and qualified technical personnel may limit the development of a country's technical capacity and productivity.

Mergers and Acquisitions

Between 1997 and 2010, 4,306 M&A deals were announced involving Thai entities valued at $81 billion. In 2010, a new record value deal was $12 billion. The largest deal involving Thai companies was in 2011 when PTT Chemical PCL merged with PTT Aromatics and Refining PCL for a deal value of $3.8 billion.

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. As of 1997, GDP amounted to 525 billion dollars.

The central region is the most developed region in economic terms. It is in the capital and its environs that there is a huge number of various trade missions, 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 more.

As for, things are worse here. Not too fertile land, an unfavorable climate for growing many crops and insufficient investment hinder 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 social services is significantly supported, it is the poorest region of the Kingdom.

The agricultural sector is partially developed in, namely in its intermountain valleys. Previously, this territory was 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, so subsequently the state 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. Tin and rubber are produced in this region.

In the 70s of the last century, the growth rate of the state economy reached an average of 7%, and sometimes even reached 13%. In 1997, the share of GDP per person was approximately $2,800. In the same year, the baht depreciated significantly 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% - trade. The problem of this direction 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, imports of petroleum products amounted to 25%. In connection with the expansion of imports in 1996, this figure fell by 8.8%. As in many other countries, Thailand began to experience 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 deposits of natural gas were discovered in the depths of the sea and the direction of hydroelectric power began to develop more intensively. In the mid-1990s, the state again became dependent on oil imports.
Almost all localities Thailand are connected to the electrical system. Only those areas that are located in the outback are not electrified. Consume the most energy in Bangkok and in settlements near the capital.

Features of agriculture in Thailand

In the 1970s, the role of agriculture in 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 the land is not so much, after the Second World War, the grain harvest began to gradually increase. In the 80s, the situation improved so much that Thailand could boast of being the most major exporter rice in the world. At the end of the 90s, the rice harvest amounted to 22 million tons, as a result of which the country took the 6th place in the world in terms of the amount of cereal grown and harvested.

Government measures introduced in the 1970s aimed at improving the state of the agro-industrial sector made it possible to boost the economy and protect it from fluctuations in world rice prices for a long time. Exports of sugar cane, cassava, corn, pineapples and other agricultural products have increased significantly. Gradually, the growth of indicators of production and marketing of rubber rose. Thailand also provides itself and some other countries with jute and cotton.

Animal husbandry plays a secondary role. In some places, buffaloes are still kept to plow the fields, however, gradually their functions are increasingly performed by mechanical tillage systems. Many peasants raise chickens and pigs for sale. Poultry farming began to develop actively in the 70-80s. The North-Eastern region has long been engaged in the cultivation of cattle and its sale.

Fisheries in Thailand

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

Forestry in Thailand

woodlands Thailand filled with precious woods. For example, in the country's territories there is teak, the export of which was banned in 1978. Because of this, national income fell by 1.6%, which forced the government to revise some laws and partially remove the complete restriction on the log house. However, teak cutting continues illegally in order to increase the territories of settlements and areas for agriculture. Already in the late 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 is only 1.6% in the GDP of the state economy. In addition, the Kingdom has long been known in the world thanks to the extraction of valuable minerals - rubies, sapphires and other gems. Not far from the coast, in the 1980s, natural gas production from underwater deposits began.
The manufacturing industry gained momentum in the 1990s and contributed an impressive share of income to the state economy. For example, in 1996 its share was about 30%. The following industries are most developed: car assembly, electronics, jewelry, petrochemicals. In the 1960s and 1970s, the textile and food industries began to develop intensively. In addition, Thailand is engaged in the production of frozen shrimp, drinks, canned seafood, plastics, tobacco products, plywood, cement, car tires. Types of national craft that the Thai population is proud of are lacquerware, the production of silk fabrics, and decorative woodcarving.

Thailand foreign trade

For a long time (from 1953 to 1997) he 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 that later arose as a result of a decline in exports and an increase in external debt undermined the positive reputation of the Kingdom in the eyes of foreign investors.

Establishment of export industrial products in the 1990s, it made it possible to become less dependent on the supply of agricultural products, which makes up about 25% of GDP.
The following goods are exported from Thailand to the USA, Japan and other countries:
clothes, 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;
goods of the mechanical engineering and automatic equipment industry.

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

Transport infrastructure in Thailand

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