What is thailands economic system

Environmental disasters have also taken a toll. As a low-lying coastal country, Thailand has suffered several catastrophic floods.

Like many developing countries, Thailand has been the victim of its own asset bubbles, particularly in real estate. One of the worst occurred in the late s, when excessive property lending and overbuilding made the whole economy vulnerable to a downturn.

The devaluation set off the Asian Financial Crisis that roiled world economies in — By , property prices were again reaching levels that stoked fears of a crash.

And of course, market and economic conditions elsewhere in the world impact Thailand. They include the effects of the dotcom bust, the downturn that followed the September 11 attacks, and the world financial crisis of Gross domestic product GDP bounced back by , growing by 7. Its economy has three key sectors: agriculture, industry, and the service sector.

It has evolved in two phases, the first from the s to the s and driven by utilization of unused labor and land. During the second phase, while labor shifted to urban areas and no new land was utilized, there was nevertheless an increase in agricultural productivity , thanks to mechanization and availability of formal credit.

The growth of manufacturing occurred over two periods under two strategies. The first, from to , was governed by policies related to import substitution , a tactic common among developing countries.

The second, from to the present, focuses on exports. Slowly, with changes in industrial policy, industries such as petrochemicals, electronics, automobile and automobile parts, computer equipment, iron and steel, minerals and integrated circuits got a boost and investment incentives.

Within services, transportation, wholesale and retail trade which includes repair of motor vehicles and motorcycles as well as personal and household goods , and tourism and travel-related activities have been prominent contributors to GDP and generators of employment. This is one source of its economic volatility.

The more Thailand relies on foreign markets, the more it is tied to the economies of its trading partners, making it vulnerable to recessions in those economies and to currency fluctuations. In , Thailand had 39,, visitors. Thailand 4. It comprises four objectives: economic prosperity — to create a value-based economy that is driven by innovation, technology and creativity; social well-being — to create a society that moves forward without leaving anyone behind inclusive society through realisation of the full potential of all members of society; raising human values — to transform cost-effective labour into a skilled workforce; and environmental protection — to become a liveable society that possesses an economic system capable of adjusting to climate change and low carbon society.

Statistical yearbook Thailand Prime Minister. Office of the Prime Minister. Enterprise Singapore. Ministry of Foreign Affairs Singapore.

Profiled industries. Thailand plans massive investment in transport infrastructure. Precious Metals. Region Reports.

Country Reports. Annual Subscriptions. Sample Report 5 years of economic forecasts for more than 30 economic indicators. Thailand GDP Chart. Overview Gross domestic product GDP measures the economic performance of a country over a given period, typically a year or a quarter.

Annual GDP growth figures are calculated by using the chained volume methodology. However, the quarterly GDP figures are still in the process of development toward the same methodology.

Annual GDP database goes back to In , the economy recorded a contraction of 2. Afterward, the economy experienced ups and downs. After having grown an impressive 7. The significant slowdown was due to the severe floods which occurred during the monsoon.

The economy managed to bounce back in and grew 6. However, political turmoil that emerged in the country last year caused weaker growth of 2. The Thai people and civil society organizations are increasingly taking part in political activities, enjoying the rights and freedoms guaranteed by the Constitution.

With the resiliency and fundamental strengths of the Thai society, the country has been able to continue its stride along the path of development, guided by the traditional Thai traits of tolerance, common sense and preference for peaceful solutions to problems.

Over the past decades, there has been a remarkable continuity in policy direction, providing a predictable framework for investors and businessmen. These policies are underpinned, among others, by the vibrant private sector and the strength and continuity of the civil service of the nation, which oversees the implementation of policies and execution of laws throughout the country.

With a free-market economy, the Kingdom has a strong domestic market and a growing middle class, with the private sector being the main engine of growth.

Thailand also has a strong industrial sector 40 percent of GDP and a robust and growing services sector 50 percent of GDP centered on the tourism and financial services industries. Given the importance of exports to Thailand, it has been a leader in the region in terms of trade liberalization and facilitation with the rest of the world, starting with its Asian neighbors. Thailand is a key player in the Association of Southeast Asian Nations ASEAN , enjoying a strategic location that provides easy access to a larger market of over million people, making it a community of connectivity, a single market and production base.

With a favorable investment climate, an entrepreneurial spirit and an open society, Thailand has been chosen by many businesses, media firms, as well as international organizations and non-governmental organizations.

As an active and responsible member of the international community, Thailand participates fully in regional and international organizations. Thailand seeks to play a constructive role in international affairs and address the challenges faced by the global community.

Currently, Thailand enjoys diplomatic relations with over countries and maintains more than 90 embassies, consulates-general and diplomatic missions abroad. Most recently, Thailand opened an embassy in Astana, Republic of Kazakhstan in Thailand attaches great importance to the deepening and broadening of its relations and cooperation with neighboring countries, the Association of Southeast Asian Nations ASEAN and the Asia-Pacific region as a whole.

At the same time, it seeks to further strengthen partnerships at all levels with strategic countries and trade partners around the world.

As a founding member of ASEAN, Thailand has been a major player in contributing to the progress of the organization as well as enhancing its role on the global stage. Thailand is a key driving force in the efforts toward an ASEAN Community by and will further strengthen regional and sub-regional cooperation in a wide spectrum of issues. Such fields include agriculture, public health, tourism and education, as well as projects inspired by the various royal initiatives and concepts such as the Philosophy of Sufficiency Economy, crop substitution and the promotion of sustainable alternative livelihood.

Thailand is strongly committed to multilateralism under the United Nations UN as a pillar of its foreign policy and as the most effective approach to addressing global challenges.

As one of the earliest members of the UN since , Thailand has actively worked in cooperation with all UN agencies in Thailand, Southeast Asia and other parts of the world.