Thailand, Economy.
ECONOMY.
Grosso modo, Thailand balances oil imports with tourist income. Rapid economic development during 1960s and 1970s slowed by worldwide recession in the early 1980s. Strong recovery by 1987. Crisis in 1997 generated by leniency on evaluating
collateral loans. Recovery in 2002. 2004 sees a restart of inflation that should be monitored more closely to avoid social problems. Higher prices for oil are showing already in consumer prices. The Governement seems more concerned with fuelling the economy by injecting money.
2004 Services : With a mature tourist industry Thailand has becomed a major destination for holidays and travel. A stronger fiscal pressure has created a new private bureocratic class,
lawyers, architects,accountants,brokers, their joint income accounts for more of 2% of GDP, and is growing rapidly. Distribution sector is very effective in Thailand, over invested. Public transportation needs investementt in rail roads and ILS for
Airports. The Health Care industry is booming on the offer side, looks over invested. The Learning industry looks also overinvested. Banks are flooded with land titles coming from repossesed land and buildings. They refuse to sell at market prices to
avoid booking loses. The Governement is offering credit to former non performant loan takers. So they can rebuy and restart non paying their house loans. The general idea is to win more time and indefinitely pospone the bank restructuring.
Telecomunications sector is entangled in an oligopoly but is performing very well from shareholders viewpoint. The stock market performed very well in the 2000-2004 period. Look at PER ratio before buying. Interest rates were artificially kept low
during the last years to pass part of the non performing loans to bank depositors. This has been partially succesful and rates are starting to raise. The Insurance industry is still underperforming. Design and Advertising are sectors to be in Thailand
as they have still big potential. Brokers and Consultants in all the fields are also in great demand as salaries do not generally match international ones. Social Security is at its infancy, but is being introduced fast. By law, all workers are to be
registered and pay taxes.
Agriculture: Major crops included rice, maize, cassava, rubber sugarcane, coconuts, fruits, fish crustacea, cotton, and tobacco. Food surpluses produced by dominant agricultural sector of
enterprising, independent small holders. About 65 percent of labor force engaged in sector, and nearly 80 percent of population dependent on it for livelihood in the mid1980s . Agricultural commodities accounted for some 60 percent of export values in
late 1980s. Forest cover decreased from more than 50 percent in 1961 to less than 25 percent in 2004. Fisheries important for food supply and foreign exchange earnings currently in crisis. Difficulties adapting the exports to the international quality standars of the EU and USA.
Industry: Modern enterprises mainly
concentrated in Bangkok and surrounding provinces. Majority Thai owned, but joint foreign ventures numerous; state enterprises form important segment. In late 1980s, sector accounted for roughly 20 percent of gross domestic product (GDP) and 30 percent
of total exports. Main categories of manufacturing included food and beverages, textiles and apparel, and wood and mineral products. Mineral resources contributed about 2 percent to gross national product (GNP) and included tin, tungsten, fluorite,
antimony, and precious stones, all significant foreign exchange earners.
Energy Sources: Exploited domestic resources include small oil fields, large lignite deposits, natural gas in Gulf of Thailand, and hydroelectric power.
Extensive, largely unevaluated oil shale deposits also identified, but exploitation economically infeasible in 1980s. Thermal (oil, natural gas, and lignite) power generation accounted for about 70 percent of total 7,570 megawatt installed generating
capacity in 1986; hydropower, which remained largely unexploited, supplied about 30 percent. Electricity generally available in Bangkok metropolitan area and in about 43,000 of nation's some 48,000 villages (mostly near Bangkok). Rural program under
way for electrification of remaining villages by late 1990s.
Foreign Trade: Major exports primary and processed agricultural products, tin, clothing, and other manufactured consumer goods. Major imports capital goods,
intermediate products, and raw materials; petroleum products largest single import by monetary value since mid-1970s. Largest trading partners Japan, United States, Asean and EU ; trade with Japan characterized by large deficit.
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