In the decade until 1995 the Thai economy was among the world’s fastest growing
with a rate of 8% to 9% a year. The government has also been successful in reducing
poverty and improving social services. Despite the hard times during the “Asian
Crisis” of 1997-98, Thailand has made important progress in social and economic
development, although in 2008 and 2009 economic growth has fallen sharply, mainly
due to the global downturn and persistent political instability, which created a fear in
the investor confidence.
The country’s economy is mainly driven by the manufacturing sector. Thailand is an
economy very export-dependent with exports accounting for two thirds of gross
domestic product.
The capital Bangkok has become the centre of economic activity and the most
prosperous part of the country, accounting for about 60% of national GDP. Thanks to
its good infrastructure, the city is competing with Singapore to become a regional hub
for air travel within Southeast Asia.