New York News: Thailand’s economic growth exceeded expectations in Q4 of 2012 as with gross domestic product surged 18.9% from 2011. Thailand has a well-developed infrastructure, a free-enterprise economy, generally pro-investment policies, and strong export industries.
Thailand achieved steady growth in economy in 2012 due largely to industrial and agriculture exports – mostly electronics, agricultural commodities and processed foods.
Thailand maintain growth by encouraging domestic consumption and public investment. Unemployment, at less than 1% of the labor force, stands as one of the lowest levels in the world, which puts upward pressure on wages in some industries.
Thailand also attracts nearly 2.5 million migrant workers from neighboring countries. Bangkok is implementing a nation-wide 300 baht per day minimum wage policy and deploying new tax reforms designed to lower rates on middle-income earners. The Thai economy has weathered internal and external economic shocks in recent years.
The global economic severely cut Thailand’s exports, with most sectors experiencing double-digit drops. In 2009, the economy contracted 2.3%. However, in 2010, Thailand’s economy expanded 7.8%, its fastest pace since 1995, as exports rebounded. In late 2011 growth was interrupted by historic flooding in the industrial areas north of Bangkok, crippling the manufacturing sector.
Industry recovered from the second quarter of 2012 onward and GDP expanded 5.8% in 2012. The government has invested in flood mitigation projects to prevent similar economic damage.
GDP (purchasing power parity.