Thailand is one of the most prosperous countries of Asia. By the early 1980s,
Thailand was on the verge of rapid industrialisation. After having enjoyed a real
compound growth rate of 9.6 per cent between 1986 and 1996, Thailand suffered a
sharp economic decline with a combination of currency and financial crisis in 1997
which was a result of the unsuccessful defence of the currency and the weak banking
system. Since the crisis broke out in mid-1997 in Thailand and spread widely across
the region, the market confidence in the Thai currency Baht, and Thai economy in
general, was largely damaged.