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Posted: March 4th, 2021
Macro-Economic Trend
This is a chart of trend of gross domestic product of Thailand at market prices estimated by the International Monetary Fund with figures in millions of Thai Baht. “Before the financial crisis, the Thai economy had years of manufacturing-led economic growth–averaging 9. 4% for the decade up to 1996. Relatively abundant and inexpensive labour and natural resources, fiscal conservatism, open foreign investment policies, and encouragement of the private sector underlay the economic success in the years up to 1997.
The economy is essentially a free enterprise system. Certain services, such as power generation, transportation, and communications, are state-owned and operated, but the government is considering privatising them in the wake of the financial crisis”. ( Neher ,Clark D) The Royal Thai Government welcomes foreign investment, and investors who are willing to meet certain requirements can apply for special investment privileges through the Board of Investment. To attract additional foreign investment, the government has modified its investment regulations.
The movement which was organised remains weak and divided in Thailand; only 3% of the work force is unionised. In 2000, the State Enterprise Labour Relations Act (SELRA) was passed, giving public sector employees similar rights to those of private sector workers, including the right to unionise. Approximately 50% of Thailand’s labour force is employed in agriculture. Rice is the country’s most important crop; Thailand is a major exporter in the world rice market. Other agricultural commodities produced in significant amounts include fish and fishery products, tapioca, rubber, grain, and sugar.
Exports of processed foods such as canned tuna, pineapples, and frozen shrimp are on the rise. Thailand’s increasingly diversified manufacturing sector made the largest contribution to growth during the economic boom. Industries registering rapid increases in production included computers and electronics, garments and footwear, furniture, wood products, canned food, toys, plastic products, gems, and jewellery. High-technology products such as integrated circuits and parts, electrical appliances, and vehicles are now leading Thailand’s strong growth.
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