Thailand: Thailand Economy Profile

BASIC INFORMATION

Capital: Bangkok

Surface Area: 513,120 sq km

Head of State: King Bhumibol Adulyadej

Head of Government: Prayuth Chan-ocha

Official Language: Thai language

Currency: Thai Baht (THB)

Population: 67,010,000 (2013)

GROSS DOMESTIC PRODUCTION (GDP)

Thailand reached a GDP of US$387.25 billion and GDP per capita of US$5,779 in 2013. Economic growth in Thailand has been volatile since the global financial crisis. After an initial crash to a contraction of 2.3% in 2009, the economy seemed to recover well in 2010 reaching an economic growth of 7.8%, only to plummet to 0.1% in 2011 due to severe flooding. The economy again recovered in 2012, reporting economic growth of 7.7% but fell to only 1.8% in 2013 due to political instability.

Thailand’s GDP and GDP growth 2007-2013

Source: World Bank

GDP components

Household consumption is Thailand’s largest GDP component, accounting for about 54% of GDP in 2013, or US$207.8 billion. Government consumption totalled US$53.5 billion, about 14% of GDP, while investment amounted to US$113.2 billion and accounted for 29% of GDP. Thailand’s external trade balance was positive in 2013 with US$12.7 billion.

Source: The World Bank

 GDP Composition

The Services sector is the largest sector in Thailand and accounted for 45% of GDP in 2013. Agriculture, including forestry and fishing, accounted for 12% of GDP in 2013, while manufacturing accounted for 33% and other industries 10%.

Source: The World Bank

CURRENCY

The exchange rate of the Thai Baht (THB) has been relatively stable in 2014 with only about 3% appreciation in the first three quarters. The average bid rate for the first three quarters of 2014 was 32.1214 THB per USD, while the average ask rate was 32.2308 THB per USD.

Official Exchange Rate

THB per USD – 1 year

The Thai Baht reached a four year record strong exchange rate of 28.77 per USD in April 2013 but depreciated by almost 14% in 2013 due to the unstable political environment.

Official Exchange Rate

THB per USD – 5 year

FOREIGN TRADE

Intra- and extra-ASEAN trade in 2013

Thailand’s total goods trade with the world reached US$478.25 billion in 2013, of which imports totalled US$249.52 billion and exports US$228.73 billion. Thailand’s intra-ASEAN trade reached US$103.67 billion, which is about 22% of total trade.

Thailand’s intra- and extra- ASEAN exports and imports, 2013

Source: ASEAN Secretariat

Trade partners

ASEAN is Thailand’s largest export destination with almost 26% of Thailand’s exports in 2013 going to ASEAN member states. Outside ASEAN, China is Thailand’s largest export destination, and received almost 12% of Thailand’s exports in the same year. The US, the EU and Japan each received about 10% of exports in 2013, while 5.8% were imported to Hong Kong.

ASEAN is also Thailand’s largest source of imports with 17.8% of total imports in 2013. Japan and China are also large import source countries with 16.4% and 15% of total imports in 2013, respectively. Other sources of Thailand’s imports include the EU (9.1%), the United Arab Emirates (6.9%), and the US (5.9%).

Source: The World Trade Organisation

Commodity groups

Manufactured goods are by far Thailand’s largest traded commodity group and the country ranks high among the world’s electronic goods manufacturers and automotive export industries. Manufactures accounted for 73.3% of exports and 63% of imports in 2013. Agricultural products are the second most exported commodity group, with 17.7% of total exports, as Thailand is among the world’s largest exporter of products such as rice, shrimps, and sugar. While Thailand produces both oil and natural gas, fuels and mining products accounted for 24.3% of Thailand’s total imports in 2013 as the country relies on imports to saturate its rising fuel demand.

Source: The World Trade Organisation

Intra- and extra-ASEAN trade 2005-2013

Thailand’s trade with the world grew by around 18-20% per year during the period 2006-2008 but fell by 18% in 2009 following the global financial crisis. Trade recovered to a pre-crisis level in 2010 and grew by almost 20% in 2011, although it hasn’t expanded much in the period between the years 2011-2013. The share of intra-ASEAN trade was about 20% in the years 2005-2009 but grew to 25% in 2010 as intra-ASEAN trade expanded from US$59.25 billion to US$93.47 billion. In 2013, the share of intra-ASEAN trade was 22%, with a total value of US$103.67 billion.

Intra-, extra- and total trade 2005-2013 (US$ billions)

Source: ASEANstats

Trade in services 2005-2011

Thailand’s trade in services has increased steadily since 2005, although with a temporary backslide in 2009 due to the global financial crisis. In 2012, total trade in services reached US$102.16 billion, more than double 2005 level.

Trade in services 2005-2012 (US$ billions)

Source: ASEAN Statistics

FOREIGN DIRECT INVESTMENT (FDI)

The total inflow of foreign direct investment (FDI) reached a new record high level of U$13 billion in 2013.  FDI inflow has been volatile in the past few years with lower levels in 2009 due to the global financial crisis and in 2011 due to severe floods in Thailand.

FDI net inflows 2005-2013 (US$ billions)

Source: Worldbank

The largest part of Thailand’s FDI comes from outside ASEAN. In 2013, extra-ASEAN investment in Thailand totalled US$11.74 billion while intra-ASEAN investment totalled US$1.26 billion. Japan was Thailand’s largest investor that year with US$5.8 billion.

FDI net inflow, intra- and extra-ASEAN, 2011-2013 (US$ millions)

Source: UNCTAD

Source: ASEAN Secretariat