Thailand Economy Trend 

 Due to its strategic location in the center of Southeast Asia and ever-growing domestic market, Thailand has always been a featured destination for foreign investments. One of the prime objectives of Thai economic policy lies in creating a favorable and attractive atmosphere in order to attract huge foreign investments. All the Thai governments have preferred an open trade and investment pattern. All the amenities including transportation and communication have improved drastically over the years making trade and export more convenient for the foreign investors.

After the financial crisis of 1997-98, Thai economy has recovered remarkably. The total public debt ratio that grew to 57.58 percent of GDP during September 2001 has reduced to 45.1 percent of GDP in May 2004. There was a slight fall in the economic growth during 2004 mainly due to avian flu, drought and rise in oil prices. But, even during this period, the budget principal repayments, which were around 2.9 percent of total budget in 2004, have grown to 4.2 percent during the fiscal year 2005.

The Thai economy is slowing recovering from the impact of the tsunami and SARS epidemic. It is showing an upward and sustainable growth trend, expected to be around 5 percent. In 2007, the export sector is expected to make revenue of around 400 billion baht, mainly due to rice, shrimp and chicken. There is a positive swing in both the automobile sector and the telecommunications sector. Automobile production is thought to rise by 3.63 percent while the auto exports are expected to rise by 11.81 percent in 2007. The economic impact has been minor due to the transition of the interim government.  In the first three quarters of 2006, the major foreign direct investments reached US$ 6.3 billion. Determined efforts of the government revived the tourism and agriculture sector, which have registered significant growth in 2006.