What seems to be the case of Thai economy is that balance of payments does not
cause any negative impact on growth and stability, but the main concern is based on the
persistent deficit in current account. According to recent data, most of the time current
account balance of Thailand was deficit ranking from 3.8% of GDP to the highest at 7.9% of
GDP in 1995-1996. One might be skeptical whether this perennial deficit has had an impact
on economic growth or other macroeconomic goals. Furthermore correlation between the
terms of trade and current account deficit is also blurred. However, one can notice that since
1990, the terms of trade had been deteriorated that partly might have led to the speculation
attack on Thai baht in the early 1997 due to the fact export growth in 1996 was negative at the
first time in many years.