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THAILAND ECONOMY

Introduction

The economy of Thailand is a newly industrialized economy. It is a heavily export-dependent economy, with exports accounting for more than two thirds of gross domestic product (GDP).

Recently, Thailand experienced GDP growth by 7.8% in 2010 making it one of the fastest growing economies in Asia and the fastest growing economy in South East Asia. The country has a GDP of 9.5 trillion Baht, or US$584 billion (PPP) making it the 24th largest economy in the world. This classifies Thailand as the second largest economy in Southeast Asia after Indonesia.

Thailand's nominal economic output as of June 2010 is $313.8 billion USD, while holding some $172 billion in foreign exchange assets which ranks 11th in world. Thailand has strong automobile industry which grew by 63% in 2010 with 1.6 million cars produced ranking it as 13th in the motor vehicle producing countries in the world. Experts predict that by the year 2015 Thailand will be one of the top 10 motor vehicle producing countries in the world.

Thailand is becoming a center of automobile manufacturing for the Association of Southeast Asian Nations (ASEAN) market. By 2004 automobile production had reached 930,000 units, more than twice as much as in 2001. Two automakers active in Thailand are Toyota and Ford. The expansion of the automotive industry has led to a boom in domestic steel production.

Tourism revenues are on the rise and contributing to about 6% of GDP. The GDP growth of Thailand was 8.0% in 2010, higher than previous highs of 5-7% under the previous civilian administration. Thailand enjoys high foreign investment and consumer confidence. Unemployment is at 1.2% as year 2010, with estimations of falling to 1% by the year 2012 therefore Thailand has one of the lowest unemployment rates in the world. Decades of economic growth reduced poverty in Thailand. Thailand enjoys one of the lowest poverty rates in Asia. In 2010, Thailand, along withJapan, South...