. As of 1997, GDP amounted to 525 billion dollars.
The central region is the most developed region economically. It is in the capital and its surroundings that there is a huge number of different trade missions, industrial enterprises, financial institutions, transport facilities and much more. In addition, this area has fertile soil 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 , here things are worse. Not very fertile lands, an unfavorable climate for growing many crops and insufficient capital investment hinder the economic development of this region. Although the conditions of government programs for improving the water supply system and road construction are being implemented here, the development of the social service sector is being 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 used for logging, but over time, due to such active deforestation for agricultural land, the number of trees decreased significantly, so the state subsequently banned logging here.
It has a large number of harbors where fishing is done. Also, ports and Songkhla carry out various types 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's 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 Thailand's large economic debt to other countries.
The number of working-age population in 1997 was 34 million people. Of the total number, 57% of citizens are employed in the agricultural sector, 17% in industry, 15% in public service and in the provision of services, 11% in trade. The problem in this area 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%. Due to the expansion of imports in 1996, this figure decreased by 8.8%. Just like 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 natural gas deposits were discovered in the depths of the sea and hydroelectric power began to develop more intensively. In the mid-90s, the state again became dependent on oil imports.
Almost all settlements Thailand have a connection to the electrical system. Only those areas that are located in the outback are not electrified. Most energy consumption is in Bangkok and in settlements near the capital.
Features of agriculture in Thailand
In the 70s, the role of agriculture in the state economy began to decline. For example, in 1973, 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 this land is occupied by rice crops. Although there is not much land, after World War II, grain harvesting began to gradually increase. In the 1980s, the situation improved so much that Thailand could boast of being the largest rice exporter 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 6th place in the world in terms of the amount of cereal grown and harvested.
Government measures introduced in the 70s aimed at improving the condition of the agro-industrial sector made it possible to boost the economy and protect it for a long time from fluctuations in world rice prices. Exports abroad of sugarcane, cassava, corn, pineapples and other agricultural products have increased significantly. The growth of rubber production and sales indicators gradually increased. Thailand also provides itself and some other countries with jute and cotton.
Livestock farming plays a secondary role. In some places, buffaloes are still kept for plowing fields, however, gradually their functions are increasingly being performed by mechanical tillage systems. Many farmers raise chickens and pigs for sale. Poultry farming began to develop actively in the 70-80s. The North-Eastern region has long been an industry in raising cattle and selling it.
Fisheries in Thailand
Fish and fish products occupy an important place in the life of Thais, being a valuable source of protein. In freshwater bodies of water, in canals and even in rice fields, villagers are engaged in breeding and catching fish and crustaceans. As for sea fishing, it “broke through” in the 60s, becoming the leading branch of the national economy. In the late 80s, aqua farms began to actively breed shrimp. At this rate, in the 90s, Thailand ranked 9th in the world in terms of the amount of seafood grown and caught 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 valuable wood species. For example, there is teak in the country, the export of which was banned in 1978. Because of this, national income decreased by 1.6%, which forced the government to revise some laws and partially remove the complete restriction on logs. However, teak logging continues illegally in order to increase settlement areas and areas for agriculture. Already at the end of the 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% of the GDP of the state economy. In addition, the Kingdom has long been known in the world for the extraction of valuable minerals - rubies, sapphires and other gems. Not far from the coast, natural gas production from underwater fields began in the 80s.
The manufacturing industry gained momentum in the 90s and contributed an impressive share of income to the state economy. For example, in 1996 its share was about 30%. The most developed industries are: car assembly, electronics, jewelry, petrochemicals. In the 60-70s, intensive development of the textile and food industries began. In addition, Thailand began producing frozen shrimp, drinks, canned seafood, plastics, tobacco products, plywood, cement, and car tires. The types of national crafts that the Thai population is proud of are lacquerware, the production of silk fabrics, and decorative wood carvings.
Foreign trade of Thailand
For a long time (from 1953 to 1997) it experienced some difficulties in the economy. Significant fluctuations in the foreign trade balance were felt, 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 debts undermined the positive reputation of the Kingdom in the eyes of foreign investors.
The establishment of exports of industrial products in the 90s made it possible to become less dependent on the supply of agricultural products, which account for about 25% of GDP.
The following goods are exported from Thailand to the USA, Japan and other countries:
clothing, 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 petroleum products;
goods from the mechanical engineering and automatic equipment industry.
To the domestic market Thailand The goods mainly come from Japan. Also, the main share of foreign investment in the country’s economy comes from Japan and the USA.
Transport infrastructure of Thailand
Highways have a length of about 70 thousand kilometers, which allows you to reach 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 countries - Singapore and Malaysia. 60% of all transportation is river transport. Transportation by air (from Bangkok International Airport) allows Thailand to maintain air communications with the countries of Asia, Europe, America, and Australia. The state's major seaports are Sattahip, Bangkok (the maximum number of export and import routes pass through the capital), Phuket, Kantang, Songkhla.
Thailand is a developing agro-industrial country whose economy is heavily dependent on foreign capital. The basis of the economy is agriculture (providing about 60% of the gross national product) and a relatively developed mining industry.
Thailand leads by a wide margin in economic power among the countries of Indochina and is slightly behind Malaysia, Singapore and Indonesia and, if we take the entire Southeast Asian region as a whole. The country is 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 country's capital, if not completely glamorous like Kuala Lumpur or Singapore, is very, very keen to match. Thailand is the Asian dragon of the so-called “second wave”. The first were Korea, Japan, Taiwan and Hong Kong in the 60s and 70s. In the 80s and 90s 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 shoes under the brand name of famous Japanese and Korean brands flourished.
As well as the completion of the complete 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 33rd in the world, this is about a third of Russia's GDP. GDP per capita - $2309, GDP according to 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, wealth is distributed very unevenly: 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), divided into 100 satangs. $1 = 45 V, but for convenience you can round up to 50. There are different bahts: 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). All tourist places love cash dollars, but old, shabby ones are not accepted. ATMs are everywhere, but cash is preferred over credit cards. There are many exchangers, the best rates are in large shopping centers and airports.
The central region of the country is richer and more powerful than other regions. Most industrial enterprises, banks, trading firms and transport facilities are concentrated in Bangkok and its environs. The most fertile lands of Thailand are confined to the Central Plain. Rice, sugar cane, corn, and cassava are grown here. This area generates a disproportionate share of national income.
Economic development in the Northeast is hampered by poor soils, a relatively dry climate, and a lack of financial resources. Despite the implementation of government programs for road construction, improving the water supply system and strengthening social services, the region’s backwardness cannot be overcome, and it is the poorest in the country.
In northern Thailand, farming can only be done in the valleys. Timber has long been the main commodity here, but due to the spread of agriculture and excessive logging, the forested area has decreased. Industrial logging is currently prohibited on public lands.
The south of the country, which occupies only 1/7 of its territory, has a wider front facing the sea than all other regions combined. Therefore, there are many small fishing harbors here. Foreign trade operations are conducted through the main local ports of Songkhla and Phuket. The main products of this area are rubber and tin.
Industry of Thailand
The mining industry's share of 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 in small quantities, including precious stones such as rubies and sapphires. In the 1980s, natural gas development began in coastal waters.
The manufacturing industry developed rapidly in the 1990s and became the most important sector of the economy, accounting for almost 30% of GDP in 1996. Such industries as electronics, petrochemicals, car assembly, and jewelry are developed.
In the 1960s and 1970s, enterprises in the textile and food industries emerged (including the production of soft drinks, freezing shrimp and canned seafood). The production of tobacco products, plastics, cement, plywood, and car tires continues to grow. The population of Thailand is engaged in traditional handicrafts - wood carving, production of silk fabrics and lacquerware.
Industry currently accounts for 44% of Thailand's GDP. Technological industries are at the forefront: assembling computers, other electronics, assembling 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 (petrochemicals, pharmaceuticals) and the traditionally strong textile industry (Thailand is the largest silk exporter) are significant. We must not forget about tourism (6% of GDP). This industry is aimed at extracting maximum money from visiting farangs. At the provincial level, a variety of crafts are very developed. Prime Minister Thaksin even put forward the slogan: “One village, one product,” implying centralized specialization of local industry. Thai subsoil is primarily tungsten and tin (3rd place in the world in terms of reserves), which are famous for their purity and absence of impurities. As already noted, the forests are worthless, 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 from Burma and other neighboring countries. There is also a lot of fish in Thailand (or rather, in the seas surrounding it). And here Thailand does not miss out, constantly building up its “fishing muscles” - about 4 million tons are caught per year, canned fish are distributed all over the world, including to Russia. There is also such a thing as precious stones, for which Thailand, together with its neighbor Burma, is one of the world leaders.
Agriculture in Thailand
Since the mid-1970s, the role of agriculture has been decreasing, in which in 1996 only 10% of national income was created versus 34% in 1973. Nevertheless, the industry satisfies domestic demand for food.
Approximately a third of the country's entire territory is occupied by cultivated land, half of which is devoted to rice crops. Peasant farms suffer from land shortages, but in the period after the Second World War they were able to achieve a gradual increase in grain harvests. Since the early 1980s, Thailand has become the world's largest exporter of rice, and at the end of the 1990s it ranked 6th in the world in terms of gross rice harvest (22 million tons).
Government efforts to diversify the sectoral structure of agricultural production in the 1970s contributed to higher yields and increased foreign sales of a number of agricultural commodities, including cassava, sugarcane, corn, and pineapples. A rise, albeit 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 in significant quantities.
Animal husbandry plays a subordinate role. Buffaloes are kept for plowing fields, which are gradually being replaced by relatively inexpensive means of small-scale mechanization. Most peasants raise 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 flooded rice fields, canals and reservoirs. Since the 1960s, marine fishing has become one of the leading sectors of the national economy. Since the late 1980s, shrimp farming on aqua farms has gained great importance. At the end of the 1990s, Thailand ranked 9th in the world in terms of seafood catch (approx. 2.9 million tons).
Thailand's forests contain many valuable hardwood tree species, including teak. The export of teak abroad was banned in 1978, and at the same time the contribution of the recently important industry to the creation of national income decreased to 1.6%. However, the volume of logging did not decrease much, which forced urgent legislative measures to be taken in 1989 to almost completely limit it. Nevertheless, illegal logging continues, including for the purpose of expanding agricultural land and settlements. Back in the late 1980s, approx. 5 million people.
Thailand foreign trade
In the period from 1952 to 1997, Thailand experienced a constant foreign trade deficit, which had to be covered by income from foreign tourism and external loans. After the end of the Cold War, loans began to come primarily 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 the crisis, which was 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 forms approx. 25%. Main export items - computers and components, integrated circuits, electrical transformers, jewelry, ready-made garments, textiles, 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 petroleum products.
Exports are directed primarily to the United States, with Japan in second place. The latter is the main supplier of goods for the domestic market of Thailand. The bulk of investment comes from the USA and Japan.
Thailand's exports are based on two pillars: electronics - computers produced under licenses from worldwide monsters, and traditional rice. Among the counterparties, the USA (22%), Japan (14%), and other Asian countries predominate; among Europeans, the UK, the Netherlands and Germany (4% each) are dominant. Thailand's main imports are fuel and heavy equipment. Fuel comes from Brunei and Indonesia, equipment from the USA and Japan. Thailand has a large external debt ($50 billion), but there is a tendency to reduce it. In absolute figures, Thailand's export-import ranges between $110-120 billion per year. The Thai army numbers 300 thousand people, the supreme commander is the king. The army has not waged serious wars for a very long time, since the time of the Burmese invasion (late 18th century), and the principle of the country’s foreign policy is to avoid all conflicts that are possible. The functions of the army are directed more towards the interior of the country: the suppression of any partisans on the borders and maximum participation in the division of the political-economic pie. Becoming a military man in Thailand means in 90% of cases providing for your family economically. But there is not enough for everyone, so there are very often clashes, both military and civilian, and between military. In terms of weapons and joint maneuvers, Thailand continues to focus on the United States.
Thailand transport
Thailand's railways are approx. 4 thousand km and connects Bangkok with the main cities in the north and northeast of the country, as well as with Malaysia and Singapore. A developed highway system (length over 70 thousand km) allows you to reach any corner of Thailand. River water transport is of great importance for internal communications, providing approx. 60% of transportation. Through the international airport in Bangkok, Thailand is connected to many countries in Europe, Asia, America and Australia with daily regular flights. There are regular flights to many cities in the country. The main seaports are Bangkok, Sattahip, Phuket, Songkhla, Kangthang. Most imports and exports pass through the port of Bangkok.
Despite numerous misconceptions, tourism is not Thailand's main source of income. According to various statistics, tourism brings only 2-5% of income to the treasury.
The country's economy largely depends on exports - it accounts for about 2/3 of GDP. Thailand is characterized as the second most economically developed country in Southeast Asia.
In terms of mineral wealth and industrial development, it ranks 4th in the region. But, according to Thai law, all oil fields are the country's untouchable reserves. Thailand is actively developing deposits of natural gas and precious stones (the so-called “ruby belt” passes through the territory of the kingdom; there are also large deposits of sapphires and let’s not forget about pearls).
Thailand has always been one of the main suppliers of tin, but today its main export natural resource 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 produces more than 40 types of minerals; since 2003, the government has taken a more loyal approach to attracting foreign investment in this area: it has relaxed the rules for foreign companies and reduced contributions to the state.
Receipts to the state treasury from fishing today account for about 10% of all export products, and specifically in foreign currency. Therefore, the authorities pay great attention to the development of fishing and maintaining the cleanliness of waters and ocean flora and fauna. Thus, with the introduction of industrial fishing using the trawl method, the sea catch began to amount to 1 million tons versus 146,000 from low-tech fishing. Today, this allows Thailand to rank third in the world among suppliers of ocean and sea fish varieties.
Traditionally, seafood and fish are the basis of Thai national cuisine, as is rice. Naturally, fishing has gained the greatest development 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, coconuts, corn, soybeans and sugarcane. Despite the substantial profits from trade in nature's gifts, the country's government adopted a law according to which 25% of the forests in the country are subject to protection, and only 15% to timber production. State-protected forests are declared national parks or recreation areas, and those available for logging are actively used in the wood processing industry. Teak furniture, rattan wicker furniture, cutlery made of bamboo or pressed coconut, a huge selection of souvenirs from various types of trees - 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. Also, part of the income is provided by agriculture (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 revenue comes from the automotive industry and electronics manufacturing. Thailand's industry accounts for about 43% of gross domestic product, although it employs only 14.5% of the workforce. The expansion of automobile production has a positive impact on other industries - for example, thanks to it, steel production has sharply increased. Today, Thailand ranks third after Japan and South Korea in Asia in automobile production. And in the production of pickup trucks based on jeeps, Thailand ranks second in the world (after the USA). Almost every car on the roads in Thailand is assembled (and very often completely manufactured) in this country. Car exports reach 200 thousand per year.
Other industries are facing stiff competition from manufacturers in similar segments - Thailand's electronics industry is facing stiff competition from Malaysia and Singapore, but still, Thailand is firmly in 3rd place in the world in the production of hard drives and chips.
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 the leader in these statistics, but occupies a confident 4th place after Malaysia, China and Japan.
Tourists from Asia are primarily attracted by the historical, cultural and natural attractions in Bangkok and its surroundings, while residents of Western countries prefer the southern part of Thailand (Phuket, Samui) with its beaches and islands.
A feature of tourism in Thailand is the ever-increasing number of people coming from northern latitudes for long-term “wintering.” They usually stay in Thailand from November to April, which is the most climatically favorable time of the year.
The most developed economically is the Central region. Most industrial enterprises, banks, trading firms and transport facilities are concentrated in Bangkok and its environs. The most fertile lands of Thailand are confined to the Central Plain. Rice, sugar cane, corn, and cassava are grown here.
Economic development of the Northeast limited by poor soils, a relatively dry climate and a lack of financial resources. Despite the implementation of government programs for road construction, improving the water supply system and strengthening social services, the region’s backwardness cannot be overcome, and it is the poorest in the country.
In Northern Thailand Only in the intermountain valleys are there conditions for agricultural production. Timber has long been the main commodity here, but due to the spread of agriculture and excessive logging, the forested area has decreased significantly. Industrial logging is currently prohibited on public lands.
In the south of the country 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 area are rubber and tin.
Since the 1970s, the average annual growth rate of the country's economy has been about 7%, and in some years reached 13%. Gross national product per capita in 1997 was estimated at approx. $2,800 In 1997, the baht depreciated due to excessive government debt, which led to a significant decline in production.
Energy heavily dependent on oil imports. In 1982, oil accounted for 25% of the value of imports. This figure dropped to 8.8% in 1996 due to a general expansion of imports. The energy crisis associated with rising prices for liquid fuels has forced the Thai government to look for alternative approaches. The most significant results were brought by the discovery of offshore natural gas fields and the development of hydroelectric power. In the mid-1990s, dependence on oil imports increased again.
Most settlements in Thailand are electrified (except those located in remote areas). The hegemony of Bangkok's metropolitan area is clearly expressed in electricity consumption.
Agriculture. Since the mid-1970s, the role of agriculture has been decreasing, in which in 1996 only 10% of national income was created versus 34% in 1973. Nevertheless, the industry satisfies domestic demand for food. Approximately a third of the country's entire territory is occupied by cultivated land, half of which is devoted to rice crops. Peasant farms suffer from land shortages, but in the period after the Second World War they were able to achieve a gradual increase in grain harvests. Since the early 1980s, Thailand has become the world's largest exporter of rice, and at the end of the 1990s it ranked 6th in the world in terms of gross rice harvest (22 million tons).
State events, efforts to diversify the sectoral structure of agricultural production in the 1970s contributed to higher yields and increased foreign sales of a number of agricultural commodities, including cassava, sugarcane, corn and pineapples. A rise, albeit 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 in significant quantities.
Animal husbandry plays a subordinate role. Buffaloes are kept for plowing fields, which are gradually being replaced by relatively inexpensive means of small-scale mechanization. Most peasants raise 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.
Fishing. 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 flooded rice fields, canals and reservoirs. Since the 1960s, marine fishing has become one of the leading sectors of the national economy. Since the late 1980s, shrimp farming on aqua farms has gained great importance. At the end of the 1990s, Thailand ranked 9th in the world in terms of seafood catch (about 2.9 million tons).
Forestry. Thailand's forests contain many valuable hardwood tree species, including teak. The export of teak abroad was banned in 1978, and at the same time the contribution of the recently important industry to the creation of national income decreased to 1.6%. However, the volume of logging did not decrease much, which forced urgent legislative measures to be taken in 1989 to almost completely limit it. Nevertheless, illegal logging continues, including for the purpose of expanding agricultural land and settlements. Back in the late 1980s, about 5 million people lived on protected forest lands.
mining industry. Its share of GDP is only about 1.6%, but the 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 in small quantities, including precious stones such as rubies and sapphires. In the 1980s, natural gas development began in coastal waters.
Manufacturing industry developed rapidly in the 1990s and became the most important sector of the economy, accounting for almost 30% of GDP in 1996. Such industries as electronics, petrochemicals, car assembly, and jewelry are developed.
In the 1960s and 1970s, enterprises in the textile and food industries emerged (including the production of soft drinks, freezing shrimp and canned seafood). The production of tobacco products, plastics, cement, plywood, and car tires continues to grow. The population of Thailand is engaged in traditional handicrafts - wood carving, production of silk fabrics and lacquerware.
International trade. In the period from 1952 to 1997, Thailand experienced a constant foreign trade deficit, which had to be covered by income from foreign tourism and external loans. After the end of the Cold War, loans began to come primarily 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 the crisis, which was 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 forms approx. 25%. Main exports - computers and components, integrated circuits, electrical transformers, jewelry, ready-made garments, textiles, 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 petroleum products.
Export is sent primarily to the United States, with Japan in second place. The latter is the main supplier of goods for the domestic market of Thailand. The bulk of investment comes from the USA and Japan.
Transport. Thailand's railways are approx. 4 thousand km and connects Bangkok with the main cities in the north and northeast of the country, as well as with Malaysia and Singapore. A developed highway system (length over 70 thousand km) allows you to reach any corner of Thailand. River water transport is of great importance for internal communications, providing approx. 60% of transportation. Through the international airport in Bangkok, Thailand is connected to many countries in Europe, Asia, America and Australia with daily regular flights. There are regular flights to many cities in the country. The main seaports are Bangkok, Sattahip, Phuket, Songkhla, Kangthang. Most imports and exports pass through the port of Bangkok.
Cities. The largest city in the country is Bangkok. Its metropolitan area includes, in addition to the capital itself, located on the eastern bank of the Chao Phraya River, the city of Thonburi on its western bank and several suburban areas. In 1995, 6,547 thousand people lived here, or over 60% of the country's urban population. Since the late 1980s, the city of Chonburi, a center of iron and steel and sugar industries, located on the coast of the Gulf of Thailand in relative proximity to the capital, has been experiencing unusually rapid growth. Chiang Mai, second only to Bangkok in population, is the center of political, economic and cultural life in Northern Thailand. Real estate in Pattaya is especially popular among investors today. The city is the administrative center of the province of the same name and was in the past the capital of the ancient Thai kingdom. Nakhon Ratchasima, also known as Korat, is the largest economic and administrative center in the east of the country, an important junction of railways and roads. Another successfully developing shopping center in the east is Ubon Ratchathani. In the south of Thailand, near the border with Malaysia, the city of Hat Yai stands out. It is located on the Bangkok-Singapore railway and is a transhipment point for local rubber plantation products exported to Malaysia.
| Property in Pattaya
What is Thailand's economy based on? The first thing that comes to mind is tourism. A country of snow-white beaches, coral reefs, cozy lagoons and coconut palms.
What else can you do to make money here? However, the first impression of a visiting tourist is deceptive. The Kingdom of Thailand is one of the fastest growing countries in the world.
Kingdom of free people
Thailand, formerly Siam, is the only country in Southeast Asia that has never been colonized. On the one hand, the existence of “no man's territory” between the possessions of Great Britain and France was convenient for Europeans. On the other hand, local rulers turned out to be strong enough to retain power in their hands without sharing it with foreigners (although this meant giving up some of their lands). So the country could develop independently - a luxury that its neighbors did not have.
However, by the 19th century, the English monopolies were able, in fact, to take over important sectors of the economy of Thailand (Siam): for example, banking, tungsten and tin mining. By the beginning of World War II, Britain controlled up to 70% of foreign investment in the country. In general, while formally remaining independent, the state actually turned into a semi-colony. In the post-war period, the center of influence shifted from England to America. In 1950, the United States entered into an agreement with Thailand on military assistance, economic and technical cooperation. Several US air and naval bases are located on the territory of the kingdom; Thailand entered the military-political bloc SEATO (South-East Asia Treaty Organization). Participation in it cost the country's budget a tidy sum, but in return Thailand received large-scale economic assistance, and American private companies invested capital in the development of Thai industry.
Fat years, lean years
Foreign investment is a good impetus for development, and Thailand has relied on it. Foreign capital was strongly welcomed, and this policy remained unchanged even during military coups. No expropriations or nationalizations. On the contrary, the inviolability of property was guaranteed by law. The authorities were generous with benefits: foreign entrepreneurs were allowed duty-free import of equipment, and their new enterprises were exempt from taxes for five years.
There is, however, one “but”. Investment is not only about creating new enterprises. The Kingdom actively accepted financial assistance from abroad. Loans, subsidies... the external debt was so huge by the 90s that in the end the country simply was unable to pay off its obligations. It was from Thailand that the large-scale Asian crisis of 1997−98 began. The government was forced to devalue the currency: the Thai baht almost halved overnight, which was a very serious blow to the Thai economy. It took some time for the kingdom to overcome the crisis and get back on its feet. And yet it happened.
Today the country is experiencing a time of prosperity. Modern sectors of the economy are developing rapidly. For example, Thailand produces almost half of all components for computer hard drives. It ranks third in Asia - after Japan and South Korea - in automobile production. In terms of electrical equipment exports, the kingdom is close to the top ten supplier countries. Many major developers, including free Forex trading programs, continue their expansion in Thailand. The policy of openness to foreign business is bearing fruit: global industry giants are building their factories in Thailand. And every new enterprise also means jobs. The unemployment rate here is one of the lowest in the world: less than one percent! (For comparison: in European countries such as Greece and Spain, this figure now exceeds 26%. That is, every fourth resident is unemployed). Moreover, Thais work not only as ordinary workers.
96% of the country's population is literate (the first six years of education are compulsory and free for everyone). The authorities are actively promoting technical education, and already in large international companies a third of engineers come from Thailand.
Yes, and of course, agriculture is worth mentioning - although its share in the modern Thai economy is no longer as large as it used to be. However, the kingdom remains one of the world's leading exporters of rice, as well as shrimp, coconuts, sugar cane, pineapples and corn. The climate allows farmers to harvest three crops of some crops a year.
What about tourism? Of course, this industry also makes its contribution to the general treasury. But 6%, you see, is a rather modest figure.
Margin of safety
Thailand's climate and location bring more than just benefits. Unfortunately, there are serious risks associated with them.
A terrible tragedy occurred on December 26, 2004, when an underwater earthquake in the Indian Ocean caused a powerful tsunami. A giant wave hit the coast, killing at least two hundred thousand people. Thailand was among the countries most heavily affected by the disaster. Nothing compares to the grief of people who have lost their loved ones. But the country’s economy also suffered colossal damage: houses, roads, and communications were destroyed.
Thanks to the efforts of local residents and volunteers from different countries, the destroyed areas were restored in the shortest possible time. Buildings on the coast are now built only in accordance with special requirements. The best engineers carefully studied the houses that were less damaged by the giant wave to determine the most durable design options. In addition, with the assistance of foreign specialists, the world's largest deep-sea system for early detection of tsunamis was installed.
Seven years later, when there was no longer any reminder of the tragedy on the coast of Thailand, a new attack struck the country. The 2011 flood was the worst in 50 years. A significant part of the crops and hundreds of large enterprises were flooded. Water reached the capital and other large industrial zones. And again - numerous casualties and destruction. The international computer market complained about the rising prices of hard drives (you remember: half of the world production of components for hard drives is concentrated in Thailand), but the country was faced with a much more global problem. It was necessary to practically rebuild the economy from scratch.
Slowly but surely the restoration of what had been destroyed took place. Factories resumed work. Roads were being rebuilt. And now, after a sharp drop in production, the Thai economy has started to grow again and is showing very good growth rates compared to many developed Western countries. Although according to survey results, Thais are now much less confident in the prospects for business in their own country than before the flood, these indicators are also gradually returning to their previous levels. It is not for nothing that Thailand is considered to be a generation of new Asian tiger countries: strong and resilient, these countries will not give up their place in the sun.