Thailand economy

A middle-income country in Southeast Asia, Thailand has made important progress in social and economic development, even though it has suffered several years of financial and economic crisis in the late 1990s and has been impacted by political uncertainty over the past year. In fact, the long term trend has been strong. In the decade that ended in 1995, the Thai economy was one of the world's fastest-growing at an average rate of 8-9 percent a year.

Agriculture is the primary means of employment, but industry, commerce, and services account for the 80% of the gross domestic product.  Rice is the leading crop; Thailand is the world's leading exporter of rice (1990). Thailand has substantial hydroelectric potential, which is being developed. In the last few years electronics, computers and integrated circuits, have become a major export earner and look set to play and increasing role in the future. During the 1980s and 1990s, electronics became important, causing a substantial rise in the per capita GDP. Oil refineries, chemical plants, steel mills and similar industries are mainly centered around Sri Racha (30km north of Pattaya) and Mab ta Phut just east of Rayong.

In the 25 years before the South East Asian downturn in 1997, Thailand's economy was transformed from being primarily agro-based to one of the most diverse in the region. Active promotion of Foreign Direct Investment - particularly after 2001, when the Thai Government introduced a dual-track policy aimed at strengthening domestic economic fundamentals and raising the nation's international profile - resulted in the rapid development of an export-orientated industrial capability driven by a quality labor-intensive manufacturing sector producing products such as computer accessories and automotive parts.

Bangkok now is a key point on round-the-world air routes. It is the political, commercial, cultural, and transportation center of the country, with the only port that can accommodate oceangoing vessels. Economic activities in Bangkok and the metropolitan area account for almost 60 percent of the national gross domestic product, though it has under 20 percent of the nation's population. Bangkok's basic infrastructure is impressive compared with neighboring countries. The city is competing closely with Singapore to become a regional hub for air travel within Southeast Asia.

Tourism for Thailand is the leading source of foreign exchange, and handicraft production has a ready market in the tourist trade. Tourism is critical to this multi-sector growth, a trend apparent in many successful emerging real estate zones. Bank of Thailand figures state that tourism contributed an impressive 9% to Thai GDP in 2005 alone, a figure that underlines the importance of tourism's contribution to the economy. Numbers of tourists visiting Thailand have almost doubled over the last decade.

Thailand's economy and burgeoning tourist industry is creating a myriad of opportunities for the property investor. The real estate sector has shown impressive capital growth maintained over several years, with rental returns consistently high. The big improvement was due to several factors, including low interest rates, strong domestic consumption, limited supply of new quality products and government tax measures to further stimulate the property market. Low interest rates are attractive for home buyers because with every one percentage point reduction the affordability of a a monthly installment improves by 7% Prospective home buyers, as a result, can now afford to buy bigger houses.