Thailand

Thailand

Country's Macro environment

Thailand's economy flourished mainly due to its export business. The main countries of interest were South Asian countries and China. They were heavily dependent on Thailand's industry of computer and electronic items. Thailand is known for its supplies in the industry of Automobile, Electronics and Agriculture. Additionally it exports these items to NAFTA countries. United States tops the list of such countries that rely heavily on the supplies of Thailand. Many countries belonging to European Union are also dependent on Thailand for the supplies of these three industries..

Political scene of the country is quite volatile and unstable. Bomb explosions, shootings and other incidents of violence are common. This unstable political condition poses serious issue for tourists and foreign investors by putting their safety and security in danger. Some areas of Thailand are under Martial Law and security officials can arrest anyone on the basis of suspicion without any proof or evidence.

Foreign investors can invest in the properties of Thailand, but they cannot own more than 49 percent of the total land according to the legislation and regulations of Thailand. Rest of the land ownership still lies with the country which is a negative aspect of their legislation. Another setback with their construction industry is that they offer lease for 60 years while the neighboring countries provide lease for as long as 99 years to its foreign investors. Countries like Japan, Honking and United States have been involved in direct foreign investments in Thailand. They majorly invested in the automobile and electronics sector of the country.

Education and workforce skill in Thailand are dependent upon religious and cultural norms of the country. There were mainly two institutions ruling the education of Thai people, royal and religions. Monks believed in teaching boys and imparting education to them in classes that were situated within the religious boundaries of monasteries. On the other hand the children belonging to royal families were given education in proper settings and were granted high positions of authority in the government sector.

Before investing into any country, it is very important to analyze its macro economic factors or indicators.

Subject Descriptor

Units

Scale

2010

2011

2012

2013

2014

Gross domestic product, constant prices

National currency

Billions

4598

4601

4853

5219

5454

Total investment

Percent of GDP

 

26

27

31

32

31

Inflation, average consumer prices

Index

 

108

112

116

120

124

Volume of exports of goods

Percent change

 

18

10

9

7

7

General government net lending/borrowing

National currency

Billions

-80

-205

-343

-459

-540

Unemployment rate

Percent of total labor force

 

1.04

0.68

0.68

0.68

0.68

International Monetary Fund, World Economic Outlook Database, April 2012

The Gross Domestic Product of any country basically measures the output of services and products in that country. If we closely observe, the GDP of Thailand has increased from 4598 Billion in 2010 to 4853 Billion in 2011 and it is predicted to increase at a stable rate in the years to come. Thailand seems to be an emerging economy as the investment figures have increased from 26 percent of GDP to 31 percent in 2012. The major contribution in country's GDP is of increased amount of investments projects in the country. Rate of unemployment has decreased from 1 percent to 0.68 percent that shows that most of the people living in Thailand are ...