Thailand: tourism GDP contribution | Statista Although some US rights holders report good cooperation with Thai enforcement authorities (including the Royal Thai Police and Royal Thai Customs), Thailand remained on the priority watch list in 2012. Economic activity is not expected to return to its pre-pandemic levels until 2022, and the recovery is projected to be slow and uneven. Thailand: Economy | Asian Development Bank By late 1996, there was a loss of confidence in the country's financial institutions; the government closed 18 trust companies and three commercial banks. Find out what the Bank Group's branches are doing in Thailand. This makes Thailand the 32nd-biggest economy in the world, according to the IMF. Thailand's Economy: Learn How It Benefits From Rubber and Rice Exports The HCFC phase-out project has enabled more than 80 small and medium size foam manufacturers to change their production technology to non-ozone depleting and low global warming impact alternatives. Thailand - Market Opportunities - International Trade Administration It is expected to generate 2.71 trillion baht in 2017. Those who were heavily indebted might sell themselves as slaves. In 2020, Thailand's economy registered a massive 6.2% GDP contraction, due to multiple waves of Covid-19. Thailand's GDP grew by 6.5 percent, with a headline inflation rate of 3.02 percent, and a current account surplus of 0.7 percent of the country's GDP. Thailands fiscal response to COVID-19 significantly mitigated the impact of the crisis on household welfare. For mineral reserves and industrial development the Kingdom ranks the 4th in the region. June 29, 2023 12:04 pm ET. [89], The Bank of Thailand sought to stem the flow of foreign funds into the country in December 2006, leading to the largest one-day drop in stock prices on the Stock Exchange of Thailand since the 1997 Asian financial crisis. Machinery and parts, vehicles, integrated circuits, chemicals, crude oil, fuels, iron and steel are among Thailand's principal imports. It made around US$11 billion worth of investment pledges to the Vietnamese economy in 2014. The Thailand Development Research Institute (TDRI) estimates that there may yet be more illegal migrant workers than legal ones in Thailand.[103]. Exports of agricultural products (especially rice) were very important and Thailand has been among the top rice exporters in the world. An additional 1999 loan from the Miyazawa Plan made the question of whether (or to what extent) the Leekpai government helped the Thai economy controversial. [35], The nation is recognized by the World Bank as "one of the great development success stories" in social and development indicators. According to estimates, there are about 200,000 "informal lenders" in the country, many of whom charge exorbitant interest rates, creating an often insurmountable burden for low-income borrowers.[116]. Its surplus in the current account balance ranks tenth of the world, made US$37.898 billion to the country in 2018. What is needed is revision of the 2017 constitution to allow for more pluralism and less inequality. Thailands economy grew at an average annual rate of 7.5% in the boom years of 1960-1996 and 5% during 1999-2005 following the Asian Financial Crisis. 2. Thailand's development trajectory: Past and future strategies A History of Thailand. The Yellow Shirts, a coalition of protesters against Thaksin, also emerged in 2005. Most securities research firms had earlier expressed the belief that the Thai economy would recover based on the following three key factors: (1) The faster-than-expected reopening of the country, which would positively impact the tourism sector and the overall Thai economy. [85] In 2008, agriculture, forestry and fishing contributed 8.4 percent to GDP; in rural areas, farm jobs supply half of employment. ", ". ", "Report for Selected Countries and Subjects", "Sino rail deal nothing to be proud about", Thailand's progress in agriculture: Transition and sustained productivity growth, "Thai fishermen strike over new rules imposed after EU's warning", "Thailand No 1 exporter of computers, components in Asean", "Thailand's outdated tech sector casts cloud over economy", "LG Electronics to move Thailand TV production to Vietnam", "Jewellery makers seek government lifeline", "Bank of Thailand Holds Key Rate as It Warns of Currency's Gains", "Tourism to continue growth spurt in 2017", "Thailand issues its first licenses to 4 crypto exchanges", "Economic and Social News; Thailand's Social Development in Q1/2016", "World Robotics 2016; Executive Summary World Robotics 2016 Industrial Robots", "Thousands of Thai workers to return to Taiwan", https://asia.nikkei.com/Economy/Thailand-hosts-giant-China-business-convention-to-lure-FDI, "US Keeps Thailand In Piracy List, But Focus On China", "Thailand - Trading Partners and Trade Balances 2021", "The Rise and Fall of the Sufficiency Economy", "Bangkok's Sex Shops, Street Bars Survive Graft Crackdown", "PM wants pico-finance operators nationwide", World Bank Summary Trade Statistics Thailand, Trade-Related Aspects of Intellectual Property Rights, Special administrative regions of the People's Republic of China, Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu, https://en.wikipedia.org/w/index.php?title=Economy_of_Thailand&oldid=1162963174, World Trade Organization member economies, All articles with bare URLs for citations, Articles with bare URLs for citations from March 2022, Articles with PDF format bare URLs for citations, Short description is different from Wikidata, Wikipedia pending changes protected pages, Articles with failed verification from April 2018, Articles containing potentially dated statements from 2017, All articles containing potentially dated statements, Articles containing potentially dated statements from 2020, Articles with unsourced statements from November 2019, Creative Commons Attribution-ShareAlike License 4.0, US$266.09 billion (net amount, June 2020), The economic history of Siam from the 16th to the 19th century, together with factors affecting the economic outlook for the twentieth, are presented in. The government also neutralized trade and conducted secret diplomacy with the People's Republic of China, displeasing the United States. Thailands 2020 Human Capital Index (HCI) of 0.61 indicates that the future productivity of a child born today will be 39% below what could have been achieved with complete education and full health. Taiwan employed the most Thai employees overall with 59,220 persons, followed by South Korea at 24,228, Israel at 23,479, Singapore at 20,000, and the UAE at 14,000. The following year, 56 financial institutions were closed by the government. Although the economy has grown moderately since 1999, future performance depends on continued reform of the financial sector, corporate-debt restructuring, attracting foreign investment and increasing exports. Cambridge University Press. It recovered quickly from that crisis but economic expansion has remained more modest ever since. Volatile energy and food prices and China's economic reopening pose risks. Share of tourism to GDP value Thailand 2017-2020. In that . [40]:62, In May 2018, the Thai Cabinet approved a FY2019 budget of three trillion baht, up 3.4 percent100 billion bahtfrom FY2018. In 2015, the plan includes 45 projects, budgeted at 2.6 billion baht. In 1988, Prem Tinsulanonda resigned and was succeeded by Chatichai Choonhavan, the first democratically elected prime minister of Thailand since 1976. We face big challenges to help the worlds poorest people and ensure that everyone sees benefits from economic growth. From 1945 to 1947 (when the Cold War had not yet begun), the Thai economy suffered because of the Second World War. The economy of Thailand has experienced incredible growth over the past four decades. In 2021, our total two-way trade amounted to $63.7 billion. A rapid phone survey by the World Bank implemented from April to June 2021 estimated that more than 70% of households experienced a decline in their income since March 2020, with vulnerable groups being hit hardest. The economic history of Thailand: Old debates, recent advances, and future prospects. When the capital of the kingdom moved to Bangkok during the 19th century, foreign trade (particularly with China) became the focus of the government. [87], Thailand is the world's third-largest seafood exporter. Tourism sector recovery and private consumption will remain the major drivers of growth. Thailand 4.0 Reinvigorates ASEAN and Connects Thailand to the Global As entered to 2023, Thai economy seems to gain recovery from the resuming tourism and private consumption. [90]:xix, Gem and jewelry exports are Thailand's third-largest export category by value, trailing automotive and parts and computer components. The second Leekpai government, in office from November 1997 to February 2001, tried to implement economic reforms based on IMF-guided neo-liberal capitalism. "that won't be easy as local professional associations will oppose the idea as they want to reserve those professional careers for Thais only". Thailand's economic fundamentals are sound, with low inflation, low unemployment, and reasonable public and external debt levels. During this decade the Thai GDP (calculated from the IMF World Economic Outlook database) had an average growth rate of 9.5 percent per year, with a peak of 13.3 percent in 1988. But Thailand's membership in the ASEAN Economic Community (AEC), makes cheap workers from neighbouring countries even more readily available, which will make it harder to make the economic case to switch to robots. However, Abhisit rejected the call until he dissolved the parliament for a new election in May 2011. The positive growth rate in 1999 was because the country's GDP had gone down for two consecutive years, as much as 10.5 percent in 1998 alone. If you continue to navigate this website beyond this page, cookies will be placed on your browser. Office of the National Economic and Social Development Council, countries with the lowest unemployment rates, Council for Democratic Reform under the Constitutional Monarchy, Electricity Generating Authority of Thailand, Thailand and the International Monetary Fund. On 26 December 2004, the Indian Ocean tsunami occurred. For example, OECD countries spend, on average, 2.5% of GDP on R&D and employ 4000 R&D researchers per million people. [90]:1213 As many as 73 percent of automotive sector workers in Thailand face a high risk of job loss due to automation. As of 2017[update], SMEs account for 80.3 percent (13 million) of Thailand's total employment. Although Thailand had previously promoted its exports, during this period the country shifted from import-substitution (ISI) to export-oriented industrialization (EOI). The following table shows the largest trading partners for Thailand in 2021 by total trade value in billions of USD.[108]. One direct effect was that Prime Minister Chavalit Yongchaiyudh resigned under pressure on 6 November 1997, succeeded by opposition leader Chuan Leekpai. [53], Another problem was foreign speculation. He said that the policy would promote connectivity and regional economic development on a sustainable basis. Thailand's unemployment rate was 0.9 percent as of 2014, down from two percent in 2004. The country ranks the world's 22nd largest export economy. During this period, a multiple-exchange-rate system was introduced amid fiscal problems, and the kingdom experienced a shortage of consumer goods. Data and research help us understand these challenges and set priorities, share knowledge of what works, and measure progress. Thailand's agricultural sector produces 8.4 percent of GDPlower than the trade and logistics and communication sectors, which account for 13.4 percent and 9.8 percent of GDP respectively. The cabinet also approved a budget deficit until 2022 in order to drive the economy to a growth of 3.54.5 percent a year.[41]. The overarching goal of the CPF is to support Thailands transition to an innovative, inclusive and sustainable economy. According to the Index, the country ranks high in quantity (expected years) of schooling and in the fraction of children not stunted, but low in education qualitymeasured by harmonized test scores. Abstract At the end of World War II. [citation needed]. The GDP of the 7th largest economy in Asia-Pacific, grew an average of 9.5% per year between 1987 and 1996, while growth slowed to an average of 3.9% during 2000-2014. In 2007 industry contributed 43.9 percent of GDP, employing 14 percent of the workforce. These four provinces account for 40 percent of the region's population. The state (and its bureaucrats) dominated capital allocation in the kingdom. [99] About 49 percent were employed in agriculture, 37 percent in the service sector and 14 percent in industry. The IMF predicted that the Thai economy would rebound strongly from the low 0.1 percent GDP growth in 2011, to 5.5 percent in 2012 and then 7.5 percent in 2013, due to the accommodating monetary policy of the Bank of Thailand, as well as a package of fiscal stimulus measures introduced by the incumbent Yingluck Shinawatra government. Large multinational and national retail players (such as Tesco Lotus, 7-Eleven, Siam Makro, Big C, Villa Market, Central Group and Mall Group) are estimated to employ fewer than 400,000 workers. Thailand: share of tourism to GDP | Statista 2. Rice is by far the leading commercial crop. [60], In the 2011 general election, the pro-Thaksin Pheu Thai Party again won a decisive victory over the Democrat Party, and Thaksin's youngest sister, Yingluck Shinawatra, succeeded Abhisit as prime minister. Economic Change in Thailand: 1850-1970., William Skinner. [84]:47, Developments in agriculture since the 1960s have supported Thailand's transition to an industrialised economy. Thailand is a net importer of oil and natural gas; however, the government is promoting ethanol to reduce imports of petroleum and the gasoline additive methyl tertiary butyl ether. Inflation under 5% is in green. [32], Thailand is the second-largest economy in Southeast Asia, after Indonesia. The World Bank will work with ASEAN to strengthen policies governing the production and use of plastics in Southeast Asia. Thailand's fishing industry employs more than 300,000 persons.[88]. Most of the population is poor and badly educated. [93] Production is being moved to Vietnam, where labour costs per day are US$6.35 versus US$9.14 in Thailand. Under the Reimbursable Advisory Services (RAS) Agreement, the World Bank is partnering with five cities - Khon Kaen, Chiang Mai, Phuket, Rayong and Nakhon Sawan - on urban infrastructure financing and with the Securities and Exchange Commission (SEC) to assess the landscape of Thai securities businesses after COVID-19 and under digital disruption. According to the Thailand Economic Monitor, Thailands economy is projected to recover to its pre-pandemic level in 2022, but the pace of growth will be slower-than-expected in 2023 owing to global headwinds. To learn more about cookies, click here. Take a look at how five cities in Thailand are collaborating with the World Bank to mobilize finance for urban infrastructure development and sustainable growth. [56] The country's GDP dropped from THB3.115 trillion at the end of 1996 to THB2.749 trillion at the end of 1998. In his televised national address on 23 January 2015 in the program "Return Happiness to the People", Prime Minister Prayut Chan-o-cha addressed the government's policy on the establishment of special economic zones.[109]. On 2 July 1997, Thailand had US$2,850 billion remaining in international reserves,[53] and could no longer protect the baht. The 2006 GDP growth rate slowed from 6.1, 5.1 and 4.8 percent year-over-year in the first three-quarters to 4.4 percent (YoY) in Q4. According to the NESDC in a report entitled, Poverty and Inequality in Thailand, the country's growth in 2014 was 0.8 percent and 2.8 percent in 2015. In 1996, the current account deficit accounted for 7.887 percent of GDP (US$14.351billion). The official number1,339,834 registered migrant workers from Cambodia, Laos, and Myanmarreported by the Office of Foreign Workers Administration under the Ministry of Labour, represents only legal migrant workers. The Perspective of Thailand Economy After the Effect of Coronavirus-19 IMF Country Focus Five Things to Know About Thailand's Economy and COVID-19 By Stella Kaendera and Lamin Leigh IMF Asia and Pacific Department June 23, 2021 Like many countries, Thailand's economy was hit hard by the COVID-19 pandemic last year. Many more are presumed to be non-registered or illegal migrants. The report also noted that 10 percent of the Thai population earned 35 percent of Thailand's aggregate income and owned 61.5 percent of its land. Listen. The country's economy is largely dependent on exports - it accounts for about 2/3 of GDP. Thailand's COVID-19 response an example of resilience and - UN News Here's the upshot: A quarter-century after California banned race-based admissions at public universities, school officials say they haven't been able to meet their diversity and equity goals . From 1987 to 1996, Thailand experienced a current account deficit averaging 5.4 percent of GDP per year, and the deficit continued to increase. [115] The shadow economy also includes loan sharking. Since 2007, the country has faced a number of challenges: a military coup in late 2006, political turmoil from 2008 to 2011, the US financial crisis reaching its peak from 2008 to 2009, floods in 2010 and 2011, and the 2012 Eurozone crisis. Despite the surge in R&D activity, Thailand needs to invest more in R&D when compared to Malaysia as well as OECD countries, at least relative to size of Thailand's economy and population (Figure 3.14, Panel B). Bangkok, Thailand CNN . Aware of Thailand's economic problems and its currency basket exchange rate, foreign speculators (including hedge funds) were certain that the government would again devalue the baht, under pressure on both the spot and forward markets. [95], Retail employs more than six million Thai workers. Published by Statista Research Department , Jan 2, 2023. A series of World Bank Group studies also examined the untapped economic opportunities to promote plastic circularity and address marine debris in Malaysia, the Philippines, and Thailand. Economy of Thailand - Wikipedia These industries include media, agriculture, distribution of land, professional services, tourism, hotels, and construction. With regard to GDP, Thailand has undergone five periods of economic growth. [97], Thailand's labour force has been estimated at from 36.8 million employed (of 55.6 million adults of working age)[98] to 38.3million (1Q2016). In 2007 the service sector (which includes tourism, banking and finance), contributed 44.7 percent of GDP and employed 37 percent of the workforce. Concurrent with the third devaluation of the Thai baht, on 22 September 1985, Japan, the US, the United Kingdom, France, and West Germany signed the Plaza Accord to depreciate the US dollar in relation to the yen and the Deutsche Mark. Biannually, the World Bank publishes the Thailand Economic Monitor (TEM) , which reviews recent economic developments and provides an independent analysis of the near- and medium-term economic outlook. . [74] He went on to point out that only 56 percent of Thailand's population has access to the Internet, an obstacle to the creation of a high-tech workforce. The economy of Thailand is dependent on exports, which accounted in 2021 for about 58 per cent of the country's gross domestic product (GDP). Thai economy to remain sluggish, research body says It finds that in 2020, the poverty rate was over 3 percentage points higher in rural areas than in urban zones and the number of rural poor outnumbered the urban poor by almost 2.3 million. Global data and statistics, research and publications, and topics in poverty and development, *Amounts include IBRD and IDA commitments, The World Banks digital platform for live-streaming, Environmental and Social Policies for Projects, International Development Association (IDA), Thailands economy grew at an average annual rate of 7.5% in the boom years of 1960-1996, declined from more than 40% in 1997 to 16.9% of GDP in 2019, National Action Plan on Marine Plastic Debris 2023-2027, Thailand World Bank Group Country Partnership Framework (CPF) FY2019-2022, extended for two more years until June 2024, Regional Action Plan for Combating Marine Debris in the ASEAN Member States (20212025), World Banks Forest Carbon Partnership Facility, assess the landscape of Thai securities businesses, help narrow learning gaps between schools, Thailand Programme for International Student Assessment (PISA) 2018, View our Thailand Economic Monitor reports, Innovation Key to Jumpstarting Thailand's Economic Recovery, Empowering Thai Cities for Sustainable Growth, Raising the Skills of Thailands Future Workforce, Impact of COVID-19 on Thailand's Households, Supporting Thailands Climate Goals through the PMR, Plastic Waste Material Flow Analysis for Thailand, Combating Marine Plastic Pollution in ASEAN, Improving the business environment through promotion of competition and innovation, Strengthening fiscal and economic institutions, Enhancing the quality of infrastructure investments, Addressing climate change and water resources management, Supporting inclusion of vulnerable groups, particularly in the fragile, conflicted areas of Southern Thailand. Compare GDP Growth Rate by Country News Stream Thailand Economy Grows 1.9% QoQ in Q1 Thailand's economy expanded 1.9% qoq in Q1 of 2023, exceeding market consensus of 1.7% and shifting from a downwardly revised 1.1% fall in Q4. "World Economic Outlook Database, April 2019", "World Economic Outlook Database, April 2023", "WORLD ECONOMIC OUTLOOK 2022 OCT Countering the Cost-of-Living Crisis", "Poverty headcount ratio at national poverty lines (% of population) - Thailand", "Poverty headcount ratio at $5.50 a day (2011 PPP) (% of population) Thailand", "Employment to population ratio, 15+, total (%) (national estimate) - Thailand", "World Economic Outlook Database, April 2020", "Thailand Board Investment Says Six-Spot Surge to 21st Rank in World Bank Ease Of Doing Business Index Rewards Thailand's efforts", "COUNTRY COMPARISON:: STOCK OF DIRECT FOREIGN INVESTMENT AT HOME", Governments Net Revenue Collection: Fiscal Year 2019 (October 2018 - September 2019), Disbursement summary as of 4th quarter of fiscal year 2019, "How Fitch, Moody's and S&P rate each country's credit rating", "Fitch Upgrades Thailand to 'BBB+'; Outlook Stable", https://www.jcr.co.jp/download/f6626688e6d6bf4e6e654d6de4254ff53f49de2596e638d6e6/17i0003_f.pdf, "Exports of goods and services (% of GDP) - Thailand | Data", "Thai Economic Performance in Q4 and 2012 and Outlook for 2013", RMB role and share of international payments is declining, "COUNTRY COMPARISON: CURRENT ACCOUNT BALANCE", "GNI per capita, Atlas method (current US$)", " 1.2 ..