Finance 9 Facts and Insights About the Thailand Economy Share on Facebook Share on Twitter Share on Google+ Share on Reddit Share on Pinterest Share on Linkedin Share on Tumblr Thailand – the home of exotic food, amazing destinations, and tremendous experiences. Many people go to Thailand to party and have a good time, but many individuals are relocating to Thailand for economic opportunities. That may come as a surprise, but Thailand maintains a robust economy that is beginning to make its regional rivals blush. Want to know more? Here are nine facts and insights about the Thailand economy: 1. Industries Thailand has been a thriving Asian economy because its industries are diverse. Although automobile and automotive parts manufacturing represents just under one-fifth of the industrial sector, Bangkok has a wide array of drivers of economic prosperity. Here are just some of them: Food and drink Agriculture Textiles Financial services Tourism Mining Cement and plastics The industries are only going to get bigger because U.S. companies are transitioning away from China and increasing trade with other countries in the region. For instance, the Thailand economy is importing more American soybeans and liquid natural gas (LNG) in exchange for lower tariffs. 2. Main Exports Today, Thailand’s total exports are valued at just under $300 billion. The nation’s main exports are: Automobiles Footwear Rice Rubber Fish Computers Refined petroleum 3. Main Imports The latest data reveal that Thailand’s imports were valued at more than $200 billion. The chief imports included: Crude oil Consumer goods Capital goods Precious metals Integrated circuits Experts say that as Thailand becomes more developed than its imports will drastically change in the coming years, especially with its 20-year strategy (see below) and its shift to natural gas. 4. Top Trading Partners Thailand exports more than 11% of its goods to the United States, followed by China, Hong Kong, Japan, Malaysia, and Australia. China accounts for one-fifth of Thailand’s imports, followed by Japan with 15.4 percent. The list is rounded out by the United States (6.9 percent), Malaysia (5.9 percent), and the United Arab Emirates (four percent). 5. Economic Freedom Score The Heritage Foundation, a conservative think tank, maintains an annual index of economic freedom. It essentially ranks the countries of the world and their rule of law, government size, regulatory efficiency, and open markets. It is used by many non-profit outfits, non-governmental organizations, policymakers, and other folks to determine what country works and what nation needs improvement. According to the 2019 Index of Economic Freedom, Thailand is ranked No. 43, behind Romania and ahead of Cyprus. It has a score of 68.3, supported by the size of government (see below) and regulatory efficiency. From the group: “To revive economic growth, the military-controlled government has prioritized policies to boost consumption and investment, including increased public spending on infrastructure, and has gradually made the regulatory framework more efficient and transparent to attract investment and better integrate the economy into the global marketplace. Business-formation procedures have been streamlined, and the financial sector has been opened to competition. The level of trade freedom is relatively high, but nontariff barriers still undercut gains from trade. The judicial system remains vulnerable to political interference, and pervasive corruption undermines government integrity.” 6. Poverty Reduction Since the 2014 coup, the Thailand economy has done a great job reducing poverty rates, though this dates back a couple of decades when the government opened markets. That said, the government has introduced new tax reforms that lower rates on middle-income households. Just seven percent of the population is below the poverty line. 7. Labor Force As of 2017, more than 38 million people work working in Thailand’s labor force. The biggest employers were found in agriculture (31.8 percent), industry (16.7 percent), and services (51.5 percent) Thailand has an unemployment rate of just 1.5 percent. 8. State of Government One reason Thailand has been able to grow as it has been through fiscal policy. This is the tax structure in Thailand: Top personal income tax rate: 35 percent. Corporate tax rate: 20 percent. The overall tax burden for the average citizen is roughly 15 percent. In recent years, the government has practiced fiscal responsibility with budgets in balance, which has been doable because public spending is only a fifth of gross domestic product. Its debt is still higher, though, reaching half of GDP. 9. 20-Year Strategy In 2016, Thailand introduced a 20-year plan that is supposed to modify its status from developing country to developed. The government aims to reform industry, stimulate troubled sectors, increase tourism, boost trade, slash red tape, and improve infrastructure. It is an aggressive and ambitious strategy, but, if successful, Thailand could emerge as one of the best economies in the next generation. When people think of going to Thailand, they usually conjure up images of lovely scenery, delicious food, friendly people, and incredible sights. They are not imagining a booming economy. But that’s what Thailand is, though it does have its hiccups like every other vibrant economy in the world. So, whether you are thinking of relocating to Thailand for a career change or you want to retire in Bangkok, now you know what kind of economy it has.