What is the economy of Thailand like?
Thailand is a newly industrialized country. After enjoying the world’s highest growth rate from 1985 to 1996 – averaging almost 9% annually – increased pressure on Thailand’s currency, the baht, in 1997, the year in which the economy contracted by 1.9% led to a crisis that uncovered financial sector weaknesses and forced the government to float the currency. Pegged at 25 to the US dollar from 1978 to 1997, the baht reached its lowest point of 56 to the US dollar in January 1998 and the economy contracted by 10.8% that same year. The collapse prompted a wider Asian financial crisis. Thailand entered a recovery stage in 1998, expanding 4.2% and 4.4% in 2000, largely due to strong exports – which increased about 20% in 2000. Growth (2.2%) was dampened by a softening of the global economy in 2001, but picked up in the subsequent years due to strong growth in the People’s Republic of China, a relatively weak baht encouraging exports and increasing domestic spending as a result of several me
