Phuket Travel Guide

Economy

The cultivation, processing, and export of agricultural products, especially rice, was traditionally the mainstay of the Thai economy. Although Thailand has long been among the most prosperous of the Asian nations, its dependence on a single crop rendered it exceedingly vulnerable to fluctuations in the world price of rice and to variations in the harvest. The government has diminished this vulnerability by instituting a number of development programs aimed at diversifying the economy and by promoting scientific methods of farming, particularly controlled flooding of the rice fields, so that the rice harvest might remain stable even in years of scanty rainfall. Spurred largely by Japanese investment, Thailand industrialized rapidly during the 1980s and early 1990s. In addition to rice, exports now include textiles, electronics, and rubber. Tourism, however, is the chief source of foreign capital. The estimated annual national budget in the early 1990s included revenue of about $21.36 billion and expenditure of about $22.4 billion.

Foreign Trade

In the early 1990s Thai exports were valued at about $28.4 billion annually, and imports were valued at about $37.6 billion. Principal exports were agricultural products, electronics, clothing and footwear, and rubber. Thailand's primary trading partners were Japan, the United States, Singapore, Germany, Hong Kong, and South Korea.

Currency and Banking

The basic unit of currency of Thailand is the baht, which is divided into 100 satang (37 baht equal U.S.$1; approx.). The Bank of Thailand, established in 1942, issues all currency. Thailand also has many commercial bank branches, as well as several foreign banks.