Thailand’s economy is a free-enterprise system driven by export led growth. It is the 2nd largest economy in Southeast Asia. Traditionally an agrarian nation, Thailand has diversified into an industrialized and services oriented economy. Driven by a dynamic private sector and government supported infrastructural development, the country has witnessed steady growth. Tourism and related industries has also become one of the top foreign exchange earners. However, agriculture remains the primary means of employment, making Thailand one of the world's largest producers and exporters of rice, sugar and rubber, which accounts for much of the country's agricultural output.

Thailand has recovered from the 1997 financial crisis and the GDP growth has averaged 5.8 percent since 2002 and in 2003 per capital income exceeded its pre-crisis levels. Thailand’s GDP slowed down to 4.5 percent in 2005 due to the tsunami, drought, and large rise in oil prices. Economic growth in 2006 has been supported by robust exports while private investment and consumption are sluggish as a result of high oil prices. It is forecasted that Thailand’s economic growth in 2007 will remain at around 5 percent which is similar to 2006. However, the bilateral trade agreements pursued with various trading partners should contribute to higher export growth.

Thailand’s Tenth National Economic and Social Development Plan, outlining the country’s development agenda to be implemented over the next five years (2007- 2011), aims for balance and sustainability in all areas of national development. It focuses on effectively using the country’s economic, social and natural resources to empower Thai society at all levels, and further strengthen institutional capacity throughout the country, which would in turn develop Thailand’s potential as a knowledge-based society. Priority areas include human and social capital development, community strengthening, economic restructuring, environmental diversity, and good governance.

Thai Economy Indicators