With a well-developed infrastructure, a free-enterprise economy, and pro-investment policies, Thailand appears to have fully recovered from the 1997- 98 Asian Financial Crisis. The country was one of East Asia's best performers from 2002-04. Boosted by increased consumption and strong export growth, the Thai economy grew 6.9% in 2003 and 6.1% in 2004 despite a sluggish global economy. Bangkok has pursued preferential trade agreements with a variety of partners in an effort to boost exports and to maintain high growth.

Figure 4 Gross domestic product in US dollars: countries in central, south and east Asia, 2004

Source: United Nations Development Report, 2006

In December 2004, a tsunami was responsible for 8,500 deaths in Thailand and caused massive destruction of property in the southern provinces of Krabi, Phang Nga, and Phuket. In 2006, investment stagnated as investors worried about the political problems engulfing the Thaksin administration. The military coup in September of that year resulted in a new economic team led by the former governor of the central bank. In December, the Thai Board of Investment reported the value of investment applications from January to November had declined by 27% year-on-year. Exports, however, have reportedly performed at record levels, rising nearly 17% in 2006. Export-oriented manufacturing - in particular automobile production - and farm output are driving these gains.⁹⁰

According to the United Nations Development Report 2006 (figures for 2004) Thailand’s Gross Domestic Product (GDP) per capita is US $8,090. This falls within the range of US $30,822 (Hong Kong) and US $1,027 (Myanmar) in countries of central, south and east Asia (Figure 4).