Thailand is considered as the second largest economy in Southeast Asia right after Indonesia.
However, even with the economy of Thailand booming, the wealth spread is not that high and Thailand is fourth richest nation per capita in Southeast Asia after Singapore, Brunei and Malaysia. Thailand also acts as an anchor economy for the neighboring countries like Laos, Burma and Cambodia which are least developed countries in that region.
Thailand has a strong automotive export industry along with electronic goods which have helped to strengthen the baht after the Asian financial crisis. However, agriculture is still the traditional income generator but there has a steady decline over the years as exports of other industries have increase.
Historically, the economy of Thailand has been a tiger economy with growth rates of 9 percent or more annually from the late 1970s to 1996. However, the 1997-98 Asian financial crisis had repercussions and it was only in 2001 that the economy of Thailand regained momentum.
The Thaksin government of Thailand took office in February 2001 with the aim of increasing domestic demand and reducing the country’s reliance on foreign trade and investment. However, the government changed its policies and its promoting domestic as well as foreign investments.
Unfortunately for Thailand, 2005 was not a good year with rising oil prices and inflation. Prior to that, in 2004, Thailand lost a lot income because of the Tsunami which wreaked havoc in the country. This was followed by a military coup in late 2006 causing a stagnation of economic growth in the country.