67089500
Thai (official) 90.7%, Burmese 1.3%, other 8%
BANGKOK (capital) 9.27 million; Samut Prakan 1.814 million (2015)
- Conventional long form
- Kingdom of Thailand
- Conventional short form
- Thailand
- Local long form
- Ratcha Anachak Thai
- Local short form
- Prathet Thai
constitutional monarchy; note - interim military-affiliated government since May 2014
- Name
- Bangkok
- Geographic coordinates
- 13 45 N, 100 31 E
- Time difference
- UTC+7 (12 hours ahead of Washington, DC, during Standard Time)
has not submitted an ICJ jurisdiction declaration; non-party state to the ICCt
With a relatively well-developed infrastructure, a free-enterprise economy, and generally pro-investment policies, Thailand is highly dependent on international trade, with exports accounting for about two-thirds of GDP. Thailand’s exports include electronics, agricultural commodities, automobiles and parts, and processed foods. The industry and service sectors produce about 90% of GDP. The agricultural sector, comprised mostly of small-scale farms, contributes only 10% of GDP but employs about one-third of the labor force. Thailand has attracted an estimated 3.0-4.5 million migrant workers, mostly from neighboring countries.
- Inflation
- 0.188%
- External debt stocks
- US$ 129,654,081,000
- Total tax rate (% of commercial profits)
- 32.6%
- Real Interest Rate
- 4.49%
- Manufacturing, value added (% of GDP)
- 27.425%
- Current Account Balance
- US$ 32,149,025,661
- Labor Force, Total
- 40,381,693
- Employment in Agriculture
- 32.28%
- Employment in Industry
- 23.68%
- Employment in Services
- 43.87%
- Unemployment Rate
- 0.63%
- Imports of goods and services
- US$ 220,487,308,063
- Exports of goods and services
- US$ 280,433,423,990
- Total Merchandise Trade
- 100.78%
- FDI, net inflows
- US$ 9,003,516,296
- Commercial Service Exports
- US$ 61,394,965,084
rice, cassava (manioc, tapioca), rubber, corn, sugarcane, coconuts, palm oil, pineapple, livestock, fish products
tourism, textiles and garments, agricultural processing, beverages, tobacco, cement, light manufacturing such as jewelry and electric appliances, computers and parts, integrated circuits, furniture, plastics, automobiles and automotive parts, agricultural machinery, air conditioning and refrigeration, ceramics, aluminum, chemical, environmental management, glass, granite and marble, leather, machinery and metal work, petrochemical, petroleum refining, pharmaceuticals, printing, pulp and paper, rubber, sugar, rice, fishing, cassava, world's second-largest tungsten producer and third-largest tin producer
- Commodities
- automobiles and parts, computer and parts, jewelry and precious stones, polymers of ethylene in primary forms, refine fuels, electronic integrated circuits, chemical products, rice, fish products, rubber products, sugar, cassava, poultry, machinery and parts, iron and steel and their products
- Partners
- US 11.2%, China 11.1%, Japan 9.4%, Hong Kong 5.5%, Malaysia 4.8%, Australia 4.6%, Vietnam 4.2%, Singapore 4.1% (2015)
- Commodities
- machinery and parts, crude oil, electrical machinery and parts, chemicals, iron & steel and product, electronic integrated circuit, automobile’s parts, jewelry including silver bars and gold, computers and parts, electrical household appliances, soybean, soybean meal, wheat, cotton, dairy products
- Partners
- China 20.3%, Japan 15.4%, US 6.9%, Malaysia 5.9%, UAE 4% (2015)
- Country Risk Rating
- A4
- A somewhat shaky political and economic outlook and a relatively volatile business environment can affect corporate payment behavior. Corporate default probability is still acceptable on average.
- Business Climate Rating
- A4
- The business environment is acceptable. Corporate financial information is sometimes neither readily available nor sufficiently reliable. Debt collection is not always efficient and the institutional framework has shortcomings. Intercompany transactions may thus run into appreciable difficulties in the acceptable but occasionally unstable environments rated A4.
- Diversified and efficient agricultural and industrial production
- Regional hub open to its dynamic neighbors
- Banking system becoming stronger
- Recurring political instability since 2006
- Foreign trade dependent on the Chinese economy
- Business climate marked by lasting links between the private sector and politicians
- High household debt
After rebounding in 2016, growth is expected to stabilize in 2017. The economy will continue to benefit from the effects of the stimulus package initiated by the authorities in 2015. Spread over 8 years, it will account for 15% of GDP. In 2017, the construction sector will benefit from the launch of major transport infrastructure projects. Nevertheless, despite the stabilization of the political situation, investment is expected to remain modest due to sluggish world demand. This is because exports are projected to continue to suffer from the Chinese economic slowdown. In addition, investment will be penalized by over-capacity in the manufacturing industry.
However, household consumption is expected to remain dynamic. Despite a slight rebound, inflation should stay under control and farmers' incomes will benefit from rising agricultural prices, including those of sugar. In addition, households should continue to benefit from an accommodative fiscal policy, in particular the maintenance of the VAT rate at 7% instead of 10%. Monetary policy too is expected to remain expansionary. Nevertheless, household debt levels are high (71% of GDP) and will continue to affect consumption. Moreover, the tourism sector is expected to remain dynamic, now that the political situation has been stabilized.
Nevertheless, Thailand will continue to be adversely affected by structural constraints and significant overcapacity, with the country suffering from a shortage of skilled labor and investment in R & D. In addition, recurrent political instability has adversely affected the business climate.
Despite fiscal stimulus policies put in place by the Government, the public deficit is expected to remain stable and public debt sustainable in 2017. Public debt, over 95% of which is held by residents, will remain below the 60% ceiling set by the Constitution.
Externally, the current account balance is expected to deteriorate slightly in 2017, but it will remain largely in surplus. The recovery in oil prices is projected to increase the energy bill. Moreover, exports of goods are suffering from the Chinese economic slowdown. However, despite recurrent political crises, Thailand remains a preferential manufacturing base for the automotive and electronics industries.
The fragile political stability and the reduction of liquidity because of expectations of US monetary policy tightening make the country vulnerable to a crisis of investor confidence. However, the level of foreign exchange reserves is comfortable (almost 10 months of imports), providing the country with satisfactory capacity to resist sudden capital flight.
Following the ousting of Yingluck Shinawatra on 7 May, 2014, the military declared martial law on 20 May, 2014, citing the risk of civil war. On 22 May, the head of the army, General Prayuth, announced a coup d'état, a curfew, the suspension of the Constitution and the creation of a National Peace and Order Maintaining Council. On 21 August, he was appointed as Prime Minister by the Parliament and formed a government, one-third of which consists of military personnel. He also indicated that no election could be held before the necessary reforms had taken place. Initially scheduled for the end of 2015, the elections have been postponed several times. The adoption of a new Constitution by referendum (61% of the electorate in favour) in August 2016 should allow the holding of parliamentary elections in 2018. Nevertheless, the new Constitution reduces the weight of universal suffrage in the appointment of the Prime Minister. The Prime Minister will, from now on, be appointed by an Assembly made up of 500 elected members and 250 appointed members and he will, also, be compelled to follow the national development plan for a period of 20 years put in place by the current administration. The Constitution is expected to be ratified by the new King of Thailand in February 2017. Following the death of his father on 13 October, 2016, Crown Prince Maha Vajiralongkorn agreed to become the new King, Rama X, on 29 November. Although he lacks the popularity of his father, Rama IX, who was a symbol of continuity and stability in a country marked by many coups d'état (14 since 1932), the transition is expected to be smooth, with the new sovereign supported by the ruling military government. However, new demonstrations and further political instability are to be feared in the run-up to the parliamentary elections in 2018.