How does thailand make money

The key drivers of slowing growth were weaker demand for exports reflecting the impact of US-China trade tensions, slowing public investments, and a drought, impacting agricultural production. These include weakness in education outcomes and skills matching, which risk future productivity and chances of the younger generation, and increasing spatial inequality, with remote areas falling behind in economic and welfare indicators.

In , the COVID pandemic struck Thailand and the economic impact has been severe, leading to widespread job losses, affecting middle-class households and the poor alike, and threatening hard-won gains in poverty reduction.

The pace of poverty reduction had already slowed in recent years after it had declined substantially over the past three decades, from Economic growth in Thailand contracted by 6. The primary impact has been a spike in unemployment rate. By the first quarter of , there were , fewer jobs compared to the previous year.

New large-scale cash transfer programs have been established to support vulnerable groups who would not otherwise have been covered by existing social assistance mechanisms. It is estimated that in the absence of the compensation package introduced by the government, poverty would have increased to 7.

A fourth wave of COVID in has slowed the recovery with vulnerable groups bearing a disproportionate burden. Slow vaccination rates and high levels of vaccine hesitancy could hamper the economic recovery and stall progress in poverty reduction. To ensure an inclusive recovery and bring back momentum for poverty reduction, policy priorities would need to focus on expanding social assistance benefits for vulnerable populations as well as addressing vaccine hesitancy while accelerating vaccination coverage.

Sources of inequality are many, ranging from intergenerational inequality when rich-poor gaps transmit from generation to generation, disparities in education both quality and completion rates , uneven access to skills needed to achieve higher incomes, unequal access to credit, and legal discrimination.

Inequality is also reflected in social exclusion of marginalized groups such as migrants, domestic workers, LGBTI, persons with disabilities and ethnic minority groups; and it is the source of many structural problems in Thai society including human trafficking, crime, corruption, and social and political instability.

Long-term sustained economic growth coupled with relatively high energy intensity has resulted in high growth of GHG emissions. Climate change is widely acknowledged to increase the frequency and intensity of natural disasters. In addition to the loss of productive activities, the destruction of critical infrastructure negatively affects the wellbeing and opportunities of the Thai people, especially vulnerable groups.

These choices will be signaled globally to our partners and will not affect browsing data. We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. Markets Emerging Markets. Key Takeaways Thailand, Southeast Asia's second-largest economy, has grown in the past generation or two from an undeveloped country to what the World Bank calls a "middle-income" country.

Its three main economic sectors are agriculture, manufacturing, and services. Thailand is noted for its economic volatility, partly a consequence of political instability dating to the s. Article Sources. Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate.

You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Articles. Economics The Top 25 Economies in the World. Partner Links. It can also refer to outperforming economies in other regions.

Anatolian Tiger Definition Anatolian Tiger is a colloquial term that refers to several cities in central Turkey whose industrial strength has resulted in impressive growth. So if you add those two numbers up, you shave about 1. There are demand-side factors as well. The danger with that assessment is it makes it sounds like temporary factors — that once the global economy recovers, once the baht weakens, we can go back to our glory export days.

Some of the structural changes are changes that have to do with the world and are not specific to us. Before the financial crisis, each percentage point of growth in global GDP translated roughly to 1. That is now down to 0. Suthiwart-Narueput: was a critically bad year for us in Thailand. We had the floods and wages started rising very rapidly. So it was a double whammy. One thing that hit investor confidence quite a bit was these big floods. It was an act of God.

So if you talk to people, you will hear what needs to be done. But, as I have said earlier, the problem is getting it done. This article is published in collaboration with Wharton. Publication does not imply endorsement of views by the World Economic Forum.

To keep up with the Agenda subscribe to our weekly newsletter. Image: Chao Praya river and central Bangkok. The views expressed in this article are those of the author alone and not the World Economic Forum. US consumer prices have risen to their highest rate since , with consumer prices up 6. Economists say the inflation could be long-lasting. World-renowned leadership expert, Michael Useem, has developed a checklist that includes 16 mission-critical principles to make good and timely decisions.

I accept. Take action on UpLink. Explore context. Explore the latest strategic trends, research and analysis. Edited excerpts from the interview follow. Knowledge Wharton : Why is that? One, the government is changing quite frequently… Knowledge Wharton: Political instability? Knowledge Wharton: A perfect storm? Knowledge Wharton: When did things go downhill for Thailand? License and Republishing. Written by.