INTRODUCTION TO THAILAND'S ECONOMY
For Business Travelers, it’s always nice and helpful to know a little bit more about the economy you are visiting. Extracting from our renowned Charting Thailand’s economy report, below are quick summary points to help you get started.
Understand the Economic Structure
- Thailand is the second largest economy in ASEAN behind Indonesia
- With population of around 68 million, Thailand is the fourth most populous country in ASEAN but its projected growth rate is the lowest
- Unfavorable demographic structure with fast decreasing portion of working age group
- Manufacturing for Export has been Thailand’s growth model for the past 30 years
- Along with majority of ASEAN economies, Thailand is an open economy that relies quite heavily on external trade
- Thailand’s economy is highly concentrated in Bangkok area which accounts for almost half of total GDP
- Economic freedom in Thailand has improved markedly over the past 4 years thanks to improved Market openness
Thailand’s Competitiveness
- Along with China and Indonesia, Thailand is in the 2nd stage of development or “efficiency-driven”
- Minimum wage in Thailand is higher than in most ASEAN countries except Singapore and Malaysia
- Despite lower growth rate, Thailand’s current labor productivity is still higher than those in Indonesia and Philippines
- Thailand’s economy ranks 32nd in the world in the latest global competitiveness rankings, up 2 places from last year
- Macroeconomic environment and Market size are strong competitive factors for Thailand
- Thailand is one of the countries that are easy to do business, and it’s getting better
- In terms of FDI, Thailand is an important player in the region but it has been behind neighbors recently
- The most problematic factors for doing business in Thailand have a lot to do with its politics and public sector, including coups
Economic Development
- Thailand’s real per capita income grew on average 3.2% a year since 1990, but is still a long way behind Singapore, Brunei and Malaysia
- Poverty reduction effort in Thailand has been quite successful with the rapid decrease in poverty rate over the past three decades
- Unemployment rate in Thailand has always been one of the lowest in the world thanks to its Agriculture sector that is flexible in absorbing labors
- Income distribution in Thailand is the best among major ASEAN economies
- Thailand’s Human Development Index has improved over the past three decades and now ranks 87th in the world, 4th among ASEAN countries
- Quality of life Thailand has been above average level of developing economies in the region
- Thailand has reached one of the 17 SDGs in “No Poverty” but faces major challenges in 6 of the remaining goals
If you are serious about doing business in Thailand, we recommend subscribing to our renowned Charting Thailand’s Economy report, which includes all the charts, figures and explanations of the topics mentioned above PLUS the outlook for Economic Growth and Key Macro Risks.
Thailand’s Growth Outlook
- What has been the growth rate of Thailand’s economy over the past 10 years and how does it compare with others?
- What were the key growth drivers for the Thailand’s economy in the last year?
- What were the source of growth for Thailand’s economy in the last 5 quarters?
- What is the growth outlook for Thailand’s economy over the next 3 years and how does it compare with others?
- How has the growth outlook for Thailand changed over the past few months?
Thailand’s Key Macro Risks
- What is the risk of inflation in Thailand and how does it compare with others?
- How healthy is the Thai banking sector?
- What is the fiscal risk in Thailand?
- What is the likelihood of raising tax?
- What is the balance of payment risk for Thailand?
- How good is the country in getting foreign exchange by the mean of commerce?
- Does Thailand have enough international reserves to service its debt and for import?
- What is the FX risk? How has the THB performed compared to other ASEAN currencies?