Editing Economy of Thailand (section)

=={{anchor|Historical Background}}History==
[[File:Istorical GDP growth of Thailand.png|left|thumb|300px|Historical growth of Thailand's economy from 1961 to 2015]]
[[File:GDP per capita development in Thailand.jpg|thumb|Development of real GDP per capita, 1890 to 2018]]

==={{anchor|Pre-1945}}Before 1945===
Thailand, formerly known as [[History of Thailand|Siam]], opened to foreign contact in the [[Pre-industrial societies|pre-industrial]] era. Despite the scarcity of resources in Siam, coastal ports and cities and those at the river mouth were early economic centers which welcomed [[merchant]]s from Persia, the Arab countries, India, and China. The rise of [[Ayutthaya Kingdom|Ayutthaya]] during the 14th century was connected to renewed Chinese commercial activity, and the kingdom became one of the most prosperous trade centers in Asia.

When the capital of the kingdom moved to Bangkok during the 19th century, foreign trade (particularly with China) became the focus of the government. Chinese merchants came to trade; some settled in the country and received official positions. A number of Chinese merchants and migrants became high dignitaries in the court.

From the mid-19th century onward, European merchants were increasingly active. The [[Bowring Treaty]], signed in 1855, guaranteed the privileges of British traders. The [[Townsend Harris#Harris Treaty of 1856 with Siam|Harris Treaty of 1856]], which updated the [[Siamese-American Treaty of Amity and Commerce|Roberts Treaty]] of 1833, extended the same guarantees to American traders.

The domestic market developed slowly, with serfdom a possible cause of domestic stagnation. Most of the male population in Siam was in the service of court officials, while their wives and daughters may have traded on a small scale in local markets. Those who were heavily indebted might sell themselves as slaves. King [[Rama V]] abolished serfdom and slavery in 1901 and 1905, respectively.

From the early 20th century to the end of World War II, Siam's economy gradually became globalized. Major entrepreneurs were ethnic Chinese who became Siamese nationals. Exports of agricultural products (especially rice) were very important and Thailand has been among the top rice exporters in the world. The Siamese economy suffered greatly from the [[Great Depression]], a cause of the [[Siamese revolution of 1932]].<ref>{{cite journal |last1=de Lapomarede |first1=Baron |title=The Setting of the Siamese Revolution |journal=Pacific Affairs |date=September 1934 |volume=7 |issue=3 |pages=251–259 |doi=10.2307/2750737 |publisher=University of British Columbia Press|jstor=2750737 }}</ref>

Significant investment in education in the 1930s (and again in the 1950s) laid the basis for economic growth, as did a liberal approach to trade and investment.<ref>{{cite book|author=Baten, Jörg |title=A History of the Global Economy. From 1500 to the Present.|date=2016|publisher=Cambridge University Press|page=293|isbn=9781107507180}}</ref>

==={{anchor|Post-1945}}After 1945===

====1945–1955====
Postwar domestic and international politics played significant roles in Thai economic development for most of the Cold War era. From 1945 to 1947 (when the Cold War had not yet begun), the Thai economy suffered because of the Second World War. During the war, the Thai government (led by Field Marshal [[Plaek Phibunsongkhram|Luang Phibulsongkram]]) allied with Japan and declared war against the Allies. After the war, Thailand had to supply 1.5 million tons of rice to Western countries without charge, a burden on the country's economic recovery. The government tried to solve the problem by establishing a rice office to oversee the rice trade. During this period, a multiple-exchange-rate system was introduced amid fiscal problems, and the kingdom experienced a shortage of consumer goods.<ref name="Nilnopkoon">{{cite web| last=Nilnopkoon|first=Somsak|title=Abstract| url=http://www.thapra.lib.su.ac.th/objects/thesis/fulltext/snamcn/Somsak_Nilnopkoon/Fulltext.pdf|work=The Thai Economic Problems After the Second World War and the Government Strategies in Dealing with Them|publisher=Silpakorn University|access-date=25 August 2012}}</ref>

In November 1947, a brief democratic period was ended by a military coup and the Thai economy regained its momentum. In his dissertation, Somsak Nilnopkoon considers the period from 1947 to 1951 one of prosperity.<ref name="Nilnopkoon"/> By April 1948, Phibulsongkram, the wartime prime minister, returned to his previous office. However, he was caught in a power struggle between his subordinates. To preserve his power, Phibulsongkram began an anti-communist campaign to seek support from the United States.<ref name="สถิตนิรามัย">{{cite web|last=สถิตนิรามัย|first=อภิชาต|title=การเมืองของการพัฒนาเศรษฐกิจยุคแรก 2498–2506|url=http://onopen.com/2006/01/619|access-date=25 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20120512044844/http://onopen.com/2006/01/619|archive-date=12 May 2012}}</ref> As a result, from 1950 onward, Thailand received military and economic aid from the US. The Phibulsongkram government established many state enterprises, which were seen as economic nationalism. The state (and its bureaucrats) dominated capital allocation in the kingdom. [[Ammar Siamwalla]], one of Thailand's most prominent economists, calls it the period of "bureaucratic capitalism".<ref name="สถิตนิรามัย"/>

====1955–1985====
In 1955, Thailand began to see a change in its economy fueled by domestic and international politics. The power struggle between the two main factions of the Phibul regime—led by Police General [[Phao Sriyanond]] and General (later, Field Marshal) [[Sarit Thanarat]]—increased, causing Sriyanonda to unsuccessfully seek support from the US for a coup against Phibulsongkram regime. Luang Phibulsongkram attempted to democratize his regime, seeking popular support by developing the economy. He again turned to the US, asking for economic rather than military aid. The US responded with unprecedented economic aid to the kingdom from 1955 to 1959.<ref name="สถิตนิรามัย"/> The Phibulsongkram government also made important changes to the country's fiscal policies, including scrapping the multiple-exchange-rate system in favor of a fixed, unified system which was in use until 1984. The government also neutralized trade and conducted secret diplomacy with the People's Republic of China, displeasing the United States.

Despite his attempts to maintain power, Luang Phibulsongkram was deposed (with Field Marshal [[Phin Choonhavan]] and Police General Phao Sriyanond) on 16 September 1957 in a coup led by Field Marshal Sarit Thanarat. The Thanarat regime (in power from 1957 to 1973) maintained the course set by the Phibulsongkram regime with US support after severing all ties with the People's Republic of China and supporting US operations in Indochina. It developed the country's infrastructure and privatized state enterprises unrelated to that infrastructure. During this period, a number of economic institutions were established, including the Bureau of Budget, the NESDC, and the [[Thailand Board of Investment]] (BOI). The National Economic and Social Development Plan was implemented in 1961.<ref>{{cite web|title=The National Economic and Social Development Plan|url=http://www.nesdb.go.th/Default.aspx?tabid=402|publisher=Office of the National Economic and Social Development Board|access-date=25 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20120826021254/http://www.nesdb.go.th/Default.aspx?tabid=402|archive-date=26 August 2012}}</ref> During this period, the market-oriented Import-Substituting Industrialization (ISI) led to economic expansion in the kingdom during the 1960s.<ref>{{cite book|last=Unger|first=Danny|title=Building Social Capital in Thailand: Fibers, Finance and Infrastructure|year=1998|publisher=Cambridge University Press|page=61|url=https://books.google.com/books?id=UMlFNn9pcEIC&q=import+substituting+industrialization+Sarit&pg=PA61|isbn=9780521639316}}</ref> According to former President Richard M. Nixon's 1967 ''Foreign Affairs'' article, Thailand entered a period of rapid growth in 1958 (with an average growth rate of seven percent a year).<ref>{{cite web|title=Asia After Viet Nam|url=https://history.state.gov/historicaldocuments/frus1969-76v01/d3|work=Foreign Relations of the United States (FRUS), 1969–1976, Volume 1, Document 3|publisher=U.S. Department of State|access-date=26 August 2012}}</ref>

From the 1970s to 1984, Thailand suffered from many economic problems: decreasing US investment, budget deficits, oil-price spikes, and inflation. Domestic politics were also unstable. With the Vietnamese occupation of Cambodia on 25 December 1978, Thailand became the front-line state in the struggle against communism, surrounded by two communist countries and a socialist Burma under General [[Ne Win]]. Successive governments tried to solve the economic problems by promoting exports and tourism, still important for the Thai economy.<ref>{{cite web|title=พัฒนาการของเศรษฐกิจไทย|url=http://www.siamintelligence.com/development-of-thai-economy/|publisher=Siam Intelligence|access-date=25 August 2012}}</ref>

One of the best-known measures to deal with the economic problems of that time was implemented under General [[Prem Tinsulanonda]]'s government, in power from 1980 to 1988. Between 1981 and 1984, the government devalued the national currency, the Thai baht (THB), three times. On 12 May 1981, it was devalued by 1.07 percent, from THB20.775/US$ to THB21/US$. On 15 July 1981, it was again devalued, this time by 8.7 percent (from THB21/US$ to THB23/US$). The third devaluation, on 5 November 1984, was the most significant: 15 percent, from THB23/US$ to THB27/US$.<ref>{{cite book|author1-link=Yu Tzong-shian|last=Yu|first=Tzong-Shian|title=From Crisis to Recovery: East Asia Rising Again?|page=267|url=https://books.google.com/books?id=NUnVCgAAQBAJ&q=baht%20currency%20basket%201978&pg=PA267|publisher=World Scientific Publishing|access-date=9 January 2016|isbn=9789814492300|date=30 August 2001}}</ref> The government also replaced the country's fixed exchange rate (where it was pegged to the US dollar) with a "multiple currency basket peg system" in which the US dollar bore 80 percent of the weight.<ref>{{cite web|last=หมวกพิมาย|first=อดิศร|title=การเมืองเรื่องลดค่าเงินบาทสมัยพลเอกเปรม ติณสูลานนท์|url=http://www.kpi.ac.th/wiki/index.php/การเมืองเรื่องลดค่าเงินบาทสมัยพลเอกเปรม_ติณสูลานนท์|publisher=ฐานข้อมูลการเมืองการปกครอง สถาบันพระปกเกล้า|access-date=26 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20120926051536/http://www.kpi.ac.th/wiki/index.php/%E0%B8%81%E0%B8%B2%E0%B8%A3%E0%B9%80%E0%B8%A1%E0%B8%B7%E0%B8%AD%E0%B8%87%E0%B9%80%E0%B8%A3%E0%B8%B7%E0%B9%88%E0%B8%AD%E0%B8%87%E0%B8%A5%E0%B8%94%E0%B8%84%E0%B9%88%E0%B8%B2%E0%B9%80%E0%B8%87%E0%B8%B4%E0%B8%99%E0%B8%9A%E0%B8%B2%E0%B8%97%E0%B8%AA%E0%B8%A1%E0%B8%B1%E0%B8%A2%E0%B8%9E%E0%B8%A5%E0%B9%80%E0%B8%AD%E0%B8%81%E0%B9%80%E0%B8%9B%E0%B8%A3%E0%B8%A1_%E0%B8%95%E0%B8%B4%E0%B8%93%E0%B8%AA%E0%B8%B9%E0%B8%A5%E0%B8%B2%E0%B8%99%E0%B8%99%E0%B8%97%E0%B9%8C|archive-date=26 September 2012}}</ref> Calculated from the IMF's World Economic Outlook Database, in the period 1980–1984, the Thai economy had an average GDP growth rate of 5.4 percent.<ref name=WEOD>{{cite web|title=Thailand|url=http://www.imf.org/external/pubs/ft/weo/2012/01/weodata/weorept.aspx?pr.x=51&pr.y=10&sy=1980&ey=1984&scsm=1&ssd=1&sort=country&ds=.&br=1&c=578&s=NGDP_R%2CNGDP_RPCH%2CNGDPD&grp=0&a=|work=World Economic Outlook Database, Apr 2012|publisher=International Monetary Fund|access-date=26 August 2012}}</ref>

====1985–1997====
Concurrent with the third devaluation of the Thai baht, on 22 September 1985, Japan, the US, the [[United Kingdom]], [[France]], and West Germany signed the [[Plaza Accord]] to depreciate the US dollar in relation to the yen and the [[Deutsche Mark]]. Since the dollar accounted for 80 percent of the Thai currency basket, the baht was depreciated further, making Thailand's exports more competitive and the country more attractive to foreign direct investment (FDI) (especially from Japan, whose currency had appreciated since 1985). In 1988, Prem Tinsulanonda resigned and was succeeded by [[Chatichai Choonhavan]], the first democratically elected prime minister of Thailand since 1976. The [[Cambodian-Vietnamese War]] was ending; Vietnam gradually retreated from Cambodia by 1989, enhancing Thai economic development.

After the 1984 baht devaluation and the 1985 Plaza Accord, although the public sector struggled due to fiscal constraints, the private sector grew. The country's improved foreign trade and an influx of foreign direct investment (mainly from Japan) triggered an economic boom from 1987 to 1996. Although Thailand had previously promoted its exports, during this period the country shifted from [[import substitution industrialization|import-substitution]] (ISI) to [[export-oriented industrialization]] (EOI). During this decade the Thai GDP (calculated from the IMF World Economic Outlook database) had an average growth rate of 9.5 percent per year, with a peak of 13.3 percent in 1988.<ref name=WEOD /> In the same period, the volume of Thai exports of goods and services had an average growth rate of 14.8 percent, with a peak of 26.1 percent in 1988.<ref name=WEOD />

Economic problems persisted. From 1987 to 1996, Thailand experienced a [[Current account (balance of payments)|current account]] deficit averaging −5.4 percent of GDP per year, and the deficit continued to increase. In 1996, the current account deficit accounted for −7.887 percent of GDP (US$14.351&nbsp;billion).<ref name=WEOD /> A shortage of capital was another problem. The first [[Chuan Leekpai]] government, in office from September 1992 to May 1995, tried to solve this problem by granting Bangkok International Banking Facility (BIBF) licenses to Thai banks in 1993. This allowed BIBF banks to benefit from Thailand's high-interest rate by borrowing from foreign financial institutions at low interest and loaning to Thai businesses. By 1997, foreign debt had risen to US$109,276 billion (65% of which was short-term debt), while Thailand had US$38,700 billion in international reserves.<ref name="Chutipat">{{cite web|last=Chutipat|first=Weraphong|title=วิกฤตการณ์ต้มยำกุ้ง ตอน "6 สาเหตุ ที่ทำให้….. ประเทศไทยเข้าสู่..วิกฤต !!"|url=http://www.doctorwe.com/variety/20120522/1279|access-date=26 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20120603020910/http://www.doctorwe.com/variety/20120522/1279|archive-date=3 June 2012}}</ref> Many loans were backed by real estate, creating an [[economic bubble]]. By late 1996, there was a loss of confidence in the country's financial institutions; the government closed 18 [[Trust company|trust companies]] and three [[commercial bank]]s. The following year, 56 financial institutions were closed by the government.<ref name="Chutipat"/>

Another problem was foreign speculation. Aware of Thailand's economic problems and its [[currency basket]] exchange rate, foreign speculators (including [[hedge fund]]s) were certain that the government would again devalue the baht, under pressure on both the [[Spot market|spot]] and [[forward market]]s. In the spot market, to force devaluation, speculators took out loans in baht and made loans in dollars. In the forward market, speculators (believing that the baht would soon be devalued) bet against the currency by contracting with dealers who would give dollars in return for an agreement to repay a specific amount of baht several months in the future.<ref>{{cite web|title=How the baht was 'attacked'|url=http://thanong.tripod.com/11282001.htm|access-date=26 August 2012}}</ref>

[[File:USD to Thai Baht exchange rate.webp|thumb|290px|
{{legend|#00247D|[[United States dollar|USD]] / [[Thai baht|Thai Baht]] [[exchange rate]] |outline=#EF3340}}
]]
In the government, there was a call from Virapong Ramangkul (one of Prime Minister [[Chavalit Yongchaiyudh]]'s economic advisers) to devalue the baht, which was supported by former Prime Minister Prem Tinsulanonda.<ref>{{cite web|title="ดร.โกร่ง" กุนซือเศรษฐกิจ 7 สมัย 7นายกฯ กับชีวิตเรือนน้อยในป่าใหญ่|url=http://www.matichon.co.th/news_detail.php?newsid=1345708723&grpid=01&catid=&subcatid=|publisher=Matichon Online|access-date=26 August 2012|url-status=dead|archive-url=https://web.archive.org/web/20130526204449/http://www.matichon.co.th/news_detail.php?newsid=1345708723&grpid=01&catid=&subcatid=|archive-date=26 May 2013}}</ref> Yongchaiyudh ignored them, relying on the [[Bank of Thailand]] (led by Governor Rerngchai Marakanond, who spent as much as US$24,000&nbsp;billion – about two-thirds of Thailand's international reserves) to protect the baht. On 2 July 1997, Thailand had US$2,850 billion remaining in international reserves,<ref name="Chutipat"/> and could no longer protect the baht. That day Marakanond decided to [[Floating exchange rate|float]] the baht, triggering the [[1997 Asian Financial Crisis]].

====1997–2000====
[[File:Asian Financial Crisis EN vector.svg|thumb|Countries affected by the [[1997 Asian financial crisis]]]]
The Thai economy collapsed as a result of the [[1997 Asian financial crisis]]. Within a few months, the value of the baht floated from THB25/US$ (its lowest point) to THB56/US$. The [[Stock Exchange of Thailand (SET)]] dropped from a peak of 1,753.73 in 1994 to a low of 207.31 in 1998.<ref>{{cite web|title=โล่งแผนคุมบาทไม่เอี่ยวกระทบหุ้น SET ติดปีก ดัชนีดีดบวก 14 จุด|url=http://www.manager.co.th/StockMarket/ViewNews.aspx?NewsID=9530000143191|publisher=Manager Online|access-date=27 August 2012|archive-date=1 November 2012|archive-url=https://web.archive.org/web/20121101152259/http://www.manager.co.th/StockMarket/ViewNews.aspx?NewsID=9530000143191|url-status=dead}}</ref> The country's GDP dropped from THB3.115&nbsp; trillion at the end of 1996 to THB2.749&nbsp; trillion at the end of 1998. In dollar terms, it took Thailand as long as 10 years to regain its 1996 GDP. The unemployment rate went up nearly threefold: from 1.5 percent of the labor force in 1996 to 4.4 percent in 1998.<ref name="Thailand">{{cite web |title=Thailand |url=http://www.imf.org/external/pubs/ft/weo/2012/01/weodata/weorept.aspx?sy=1995&ey=2007&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=24&pr1.y=13&c=578&s=NGDP_R%2CNGDP_RPCH%2CNGDPD%2CTX_RPCH%2CLUR%2CBCA%2CBCA_NGDPD&grp=0&a= |access-date=27 August 2012 |work=World Economic Outlook Database |publisher=International Monetary Fund}}</ref>

A sharp decrease in the value of the baht abruptly increased foreign debt, undermining financial institutions. Many were sold, in part, to foreign investors while others went bankrupt. Due to low international reserves from the Bank of Thailand's currency-protection measures, the government had to accept a loan from the [[International Monetary Fund]] (IMF). Overall, Thailand received US$17.2&nbsp;billion in [[aid]].<ref>{{cite web|title=Recovery from the Asian Crisis and the Role of the IMF|url=http://www.imf.org/external/np/exr/ib/2000/062300.htm#box1|publisher=International Monetary Fund|access-date=27 August 2012}}</ref>

The crisis impacted Thai politics. One direct effect was that Prime Minister [[Chavalit Yongchaiyudh]] resigned under pressure on 6 November 1997, succeeded by opposition leader [[Chuan Leekpai]]. The second Leekpai government, in office from November 1997 to February 2001, tried to implement economic reforms based on IMF-guided [[Neoliberalism|neo-liberal capitalism]]. It pursued strict fiscal policies (keeping interest rates high and cutting government spending), enacting 11 laws it called "bitter medicine" and critics called "the 11 nation-selling laws". The Thai government and its supporters maintained that with these measures, the Thai economy improved.

In 1999, Thailand had a positive GDP growth rate for the first time since the crisis.{{citation needed|date=October 2023}} Many critics, however, mistrusted the IMF and maintained that government-spending cuts harmed the recovery. Unlike economic problems in Latin America and Africa, they asserted, the Asian financial crisis was born in the private sector and the IMF measures were inappropriate. The positive growth rate in 1999 was because the country's GDP had gone down for two consecutive years, as much as −10.5 percent in 1998 alone. In terms of the baht, it was not until 2002 (in dollar terms, not until 2006) that Thailand would regain its 1996 GDP. An additional 1999 loan from the Miyazawa Plan made the question of whether (or to what extent) the Leekpai government helped the Thai economy controversial.

===Recent economic history (2001–present)===
An indirect effect of the financial crisis on Thai politics was the rise of [[Thaksin Shinawatra]]. In reaction to the government's economic policies, Thaksin Shinawatra's [[Thai Rak Thai Party]] won a landslide victory over Leekpai's [[Democrat Party (Thailand)|Democrat Party]] in the [[2001 Thai general election|2001 general election]] and took office in February 2001. Although weak export demand held the GDP growth rate to 2.2 percent in the first year of his administration, the first Thaksin Shinawatra government performed well from 2002 to 2004 with growth rates of 5.3, 7.1 and 6.3 percent respectively. His policy was later called [[Thaksinomics]]. During Thaksin's first term, Thailand's economy regained momentum and the country paid its IMF debt by July 2003 (two years ahead of schedule). Despite criticism of Thaksinomics, Thaksin's party won another landslide victory over the Democrat Party in the [[2005 Thai general election|2005 general election]]. The official economic data related to Thaksinomics reveals that between 2001 and 2011, Isan's GDP per capita more than doubled to US$1,475, while, over the same period, GDP in the Bangkok area rose from US$7,900 to nearly US$13,000.<ref>{{cite news|title=Thai northeast vows poll payback to Shinawatra clan|url=https://www.google.com/hostednews/afp/article/ALeqM5iMeE4IHFr1q7Rr-eX5J1UmL3gcZQ?docId=b69c47e3-e4f5-4c32-8679-3d7ce5f040a3|access-date=8 February 2014|newspaper=AFP|date=31 January 2014|author=Aidan Jones}}{{dead link|date=June 2024|bot=medic}}{{cbignore|bot=medic}}</ref>
[[File:Phuket after tsunami (2004).jpg|left|thumb|[[Phuket (city)|Phuket]] in 2004. The Indian Ocean tsunami affected the economy]]
Thaksin's second term was less successful. On 26 December 2004, the [[2004 Indian Ocean earthquake and tsunami|Indian Ocean tsunami]] occurred. In addition to the human toll, it impacted the first-quarter Thai GDP in 2005. The [[People's Alliance for Democracy|Yellow Shirts]], a coalition of protesters against Thaksin, also emerged in 2005. In 2006, Thaksin dissolved the parliament and called for a general election. The [[April 2006 Thai general election|April 2006 general election]] was boycotted by the main opposition parties. Thaksin's party won again, but the election was declared invalid by the Constitutional Court. Another [[October 2006 Thai general election|general election]], scheduled for October 2006, was cancelled. On 19 September a group of soldiers calling themselves the [[Council for National Security|Council for Democratic Reform under the Constitutional Monarchy]] and led by [[Sonthi Boonyaratglin]] organized a coup, ousting Thaksin while he was in New York preparing for a speech at the United Nations General Assembly. During the last year of the second Thaksin government, the Thai GDP grew by 5.1 percent. Under his government, Thailand's overall ranking in the IMD Global Competitiveness Scoreboard rose from 31st in 2002 to 25th in 2005 before falling to 29th in 2006.<ref name="tma.or.th">{{cite web|title=Thailand Competitiveness Conference 2011|url=http://www.tma.or.th/LinkClick.aspx?fileticket=82dwW9Sbyug%3D&tabid=149|access-date=3 September 2012|url-status=dead|archive-url=https://web.archive.org/web/20130515082425/http://www.tma.or.th/LinkClick.aspx?fileticket=82dwW9Sbyug%3D&tabid=149|archive-date=15 May 2013}}</ref>

After the coup, Thailand's economy again suffered. From the last quarter of 2006 through 2007, the country was ruled by a military junta led by General [[Surayud Chulanont]], who was appointed prime minister in October 2006. The 2006 GDP growth rate slowed from 6.1, 5.1 and 4.8 percent year-over-year in the first three-quarters to 4.4 percent (YoY) in Q4.<ref name="Quarterly Gross Domestic Product">{{cite web|title=Quarterly Gross Domestic Product|url=http://ni-qgdp.nesdb.go.th/macro/NAD/1_qgdp/statistic/menu.html|publisher=Office of the National Economic and Social Development Board|access-date=17 July 2012|url-status=dead|archive-url=https://web.archive.org/web/20130201100409/http://ni-qgdp.nesdb.go.th/macro/NAD/1_qgdp/statistic/menu.html|archive-date=1 February 2013}}</ref> Thailand's ranking on the IMD Global Competitiveness Scoreboard fell from 26th in 2005 to 29th in 2006 and 33rd in 2007.<ref name="tma.or.th"/> Thaksin's plan for massive infrastructure investments was unmentioned until 2011, when his younger sister [[Yingluck Shinawatra]] entered office. In 2007, the Thai economy grew by 5 percent. On 23 December 2007, the military government held a [[2007 Thai general election|general election]]. The pro-Thaksin [[People's Power Party (Thailand)|People's Power Party]], led by [[Samak Sundaravej]], won a landslide victory over [[Abhisit Vejjajiva]]'s Democrat Party.

Under the People's Power Party-led government the country fell into political turmoil. This, combined with the [[2008 financial crisis]] cut the 2008 Thai GDP growth rate to 2.5%.<ref name="Quarterly Gross Domestic Product" /> Before the [[People's Alliance for Democracy]] (PAD) and the Yellow Shirts reconvened in March 2008, the GDP grew by 6.5 percent (YoY) in the first quarter of the year.<ref name="Quarterly Gross Domestic Product" /> Thailand's ranking on the IMD World Competitiveness Scoreboard rose from 33rd in 2007 to 27th in 2008. The Yellow Shirts occupied the Government House of Thailand in August 2008, and on 9 September the Constitutional Court delivered a decision removing Samak Sundaravej from the prime ministership.

[[Somchai Wongsawat]], Thaksin's brother-in-law, succeeded Samak Sundaravej as prime minister on 18 September. In the US, the [[2008 financial crisis]] reached its peak while the Yellow Shirts were still in Government House, impeding government operations. GDP growth dropped from 5.2 percent (YoY) in Q2 2008 to 3.1 percent (YoY) and −4.1 percent (YoY) in Q3 and Q4. From 25 November to 3 December 2008 the Yellow Shirts, protesting Somchai Wongsawat's prime ministership, seized the two Bangkok airports, ([[Suvarnabhumi Airport|Suvarnabhumi]] and [[Don Mueang International Airport|Don Mueang]]), and damaged Thailand's image and economy. On 2 December the Thai Constitutional Court issued a decision dissolving the People's Power Party, ousting Somchai Wongsawat as prime minister.
[[File:President Lee holds summit with Thai Prime Minister Abhisit Vejjajiva (4345441042).jpg|thumb|A coalition government under [[Abhisit Vejjajiva]] was formed in 2008]]
By the end of 2008, a coalition government led by [[Abhisit Vejjajiva]]'s Democrat Party was formed: "[The] legitimacy of the Abhisit government has been questioned since the first day that the Democrat party took the office in 2008 as it was allegedly formed by the military in a military camp".<ref>{{cite web|last=Withitwinyuchon|first=Nutthathirataa|title=Thailand's political conflict deemed to continue after election|url=http://news.xinhuanet.com/english2010/indepth/2011-01/14/c_13691106.htm|archive-url=https://web.archive.org/web/20110119021907/http://news.xinhuanet.com/english2010/indepth/2011-01/14/c_13691106.htm|url-status=dead|archive-date=19 January 2011|publisher=xinhuanet|access-date=3 September 2012}}</ref> The government was under pressure from the [[2008 financial crisis]] and the [[Red Shirts (Thailand)|Red Shirts]], who refused to acknowledge Abhisit Vejjajiva's prime ministry and called for new elections as soon as possible. However, Abhisit rejected the call until he dissolved the parliament for a new election in May 2011. In 2009, his first year in office, Thailand experienced a negative growth rate for the first time since the [[1997 Asian financial crisis]]: a GDP of −2.3 percent.<ref name="Quarterly Gross Domestic Product" />

In 2010, the country's growth rate increased to 7.8 percent. However, with the instability surrounding the major 2010 protests, the GDP growth of Thailand settled at around 4–5 percent from highs of 5–7 percent under the previous civilian administration—political uncertainty was identified as the primary cause of a decline in investor and consumer confidence. The IMF predicted that the Thai economy would rebound strongly from the low 0.1 percent GDP growth in 2011, to 5.5 percent in 2012 and then 7.5 percent in 2013, due to the accommodating monetary policy of the Bank of Thailand, as well as a package of fiscal stimulus measures introduced by the incumbent [[Yingluck Shinawatra]] government.<ref>{{cite news|url=https://www.wsj.com/articles/SB10001424052970203960804577243432046066486 |title=Thailand Economy To Rebound Strongly In 2012 |newspaper=Wall Street Journal |date=24 February 2012 |access-date=26 April 2012|author= Phisanu Phromchanya}}</ref>

In the first two-quarters of 2011, when the political situation was relatively calm, the Thai GDP grew by 3.2 and 2.7 percent (YoY).<ref name="Quarterly Gross Domestic Product" /> Under Abhisit's administration, Thailand's ranking fell from 26 in 2009, to 27 in 2010 and 2011,<ref name="tma.or.th"/> and the country's infrastructure declined since 2009.<ref name="tma.or.th"/>

In the [[2011 Thai general election|2011 general election]], the pro-Thaksin [[Pheu Thai Party]] again won a decisive victory over the Democrat Party, and Thaksin's youngest sister, [[Yingluck Shinawatra]], succeeded Abhisit as prime minister. Elected in July, the Pheu Thai Party-led government began its administration in late-August, and when Yingluck entered office, the [[2011 Thailand floods]] threatened the country—from 25 July 2011 to 16 January 2012, flood waters covered 65 of the country's 76 [[Provinces of Thailand|provinces]]. The World Bank assessed the total damage in December 2011 and reported a cost of THB1.425&nbsp;trillion (about US$45.7&nbsp;billion).<ref>{{cite web|title=The World Bank Supports Thailand's Post-Floods Recovery Effort|url=http://www.worldbank.org/en/news/2011/12/13/world-bank-supports-thailands-post-floods-recovery-effort|publisher=The World Bank|access-date=3 September 2012}}</ref>

The 2011 GDP growth rate fell to 0.1 percent, with a contraction of 8.9 percent (YoY) in Q4 alone.<ref name="Gross Domestic Product: Q2/2012">{{cite web|title=Gross Domestic Product: Q2/2012|url=http://www.nesdb.go.th/Portals/0/eco_datas/account/qgdp/data2_12/detail_Thai.pdf|publisher=Office of the National Economic and Social Development Board|access-date=3 September 2012|url-status=dead|archive-url=https://web.archive.org/web/20120907203352/http://www.nesdb.go.th/Portals/0/eco_datas/account/qgdp/data2_12/detail_Thai.pdf|archive-date=7 September 2012}}</ref> The country's overall competitiveness ranking, according to the IMD World Competitiveness Scoreboard, fell from 27 in 2011 to 30 in 2012.<ref>{{cite web|title=IMD announces its 2012 World Competitiveness Rankings|url=http://www.imd.org/news/IMD-announces-its-2012-World-Competitiveness-Rankings.cfm|publisher=IMD|access-date=3 September 2012}}</ref>

In 2012, Thailand was recovering from the previous year's severe flood. The Yingluck government planned to develop the country's infrastructure, ranging from a long-term water-management system to logistics. The Eurozone crisis reportedly harmed Thailand's economic growth in 2012, directly and indirectly affecting the country's exports. Thailand's GDP grew by 6.5 percent, with a headline inflation rate of 3.02 percent, and a current account surplus of 0.7 percent of the country's GDP.<ref name="http">{{cite web |title=Thailand: Gross domestic product, current prices |url=http://www.imf.org/external/pubs/ft/weo/2018/01/weodata/weorept.aspx?sy=2017&ey=2017&scsm=1&ssd=1&sort=country&ds=.&br=1&pr1.x=27&pr1.y=16&c=578&s=NGDP%2CNGDPD&grp=0&a= |access-date=10 May 2018 |publisher=International Monetary Fund}}</ref>
[[File:Baht2013 protest.jpg|left|thumb|The Thai baht depreciated during the [[2013–2014 Thai political crisis|2013 Thai protests]]]]
On 23 December 2013, the Thai baht dropped to a three-year low due to the political unrest during the preceding months. According to ''Bloomberg'', the Thai currency lost 4.6 percent over November and December, while the main stock index also dropped (9.1 percent).<ref>{{cite news|title=Baht Falls to a Three-Year Low, Stocks Drop on Political Unrest|url=https://www.bloomberg.com/news/2013-12-23/thailand-s-baht-declines-to-a-three-year-low-on-political-unrest.html|access-date=25 December 2013|newspaper=Bloomberg L.P.|date=23 December 2013|author=Justina Lee}}</ref>

Following the Thai military coup in May 2014, [[Agence France Presse]] (AFP) published an article claiming that the nation was on the "verge of recession". Published on 17 June 2014, the article's main subject is the departure of nearly 180,000 Cambodians from Thailand due to fears of an immigration "clampdown", but concluded with information on the Thai economy's contraction of 2.1 percent quarter-on-quarter, from January to the end of March 2014.<ref>{{cite news|title=Cambodian exodus from Thailand jumps to nearly 180,000|url=http://www.afp.com/en/news/cambodian-exodus-thailand-jumps-nearly-180000|access-date=17 June 2014|work=AFP|agency=AFP|date=17 June 2014|url-status=dead|archive-url=https://archive.today/20140617134545/http://www.afp.com/en/news/cambodian-exodus-thailand-jumps-nearly-180000|archive-date=17 June 2014}}</ref>

Since the cessation of the curfew that was enacted by the military in May 2014, the Federation of Thai Industries (FTI)'s chairman, Supant Mongkolsuthree, said that he projects growth of 2.5–3 percent for the Thai economy in 2014, as well as a revitalisation of the Thai tourist industry in the second half of 2014. Furthermore, Supant also cited the Board of Investment's future consideration of a backlog of investment projects, estimated at 700 billion baht, as an economically beneficial process that would occur around October 2014.<ref>{{cite news|title=Confidence in Thailand boosted after curfew lifted: FTI|url=http://www.nationmultimedia.com/national/Confidence-in-Thailand-boosted-after-curfew-lifted-30236351.html|access-date=17 June 2014|work=The Nation|date=16 June 2014|archive-date=11 August 2014|archive-url=https://web.archive.org/web/20140811054621/http://www.nationmultimedia.com/national/Confidence-in-Thailand-boosted-after-curfew-lifted-30236351.html|url-status=dead}}</ref>
Thailand's flagging economic performance led, at the end of 2015, to increased criticism of the [[National Council for Peace and Order]]'s (NCPO) handling of the economy, both at home and in influential Western media.<ref name="Pesek-20151204">{{cite news|last1=Pesek|first1=William|title=Thailand's Generals Shoot Economy in the Foot|url=http://www.barrons.com/articles/thailands-generals-shoot-land-of-smiles-in-the-foot-1449191706|access-date=6 December 2015|work=Barron's|date=4 December 2015}}</ref><ref>{{cite news|last1=Fuller|first1=Thomas|title=Thai Economy and Spirits Are Sagging|url=https://www.nytimes.com/2015/11/30/world/asia/thailand-economy-tourism.html|access-date=1 December 2015|work=[[The New York Times]]|date=29 November 2015}}</ref> The country's economic growth of 2.8% in the first quarter of 2019 was recorded to be the slowest since 2014.<ref>{{cite web|url=https://www.businesstimes.com.sg/government-economy/bank-of-thailand-holds-key-rate-as-growth-weakens-baht-surges|title=Bank of Thailand holds key rate as growth weakens, baht surges|access-date=26 June 2019|work=Business Times|date=26 June 2019 }}</ref>

The military government unveiled its newest economic initiative, "Thailand 4.0", in 2016. Thailand 4.0 is the "...master plan to free Thailand from the [[middle income trap|middle-income trap]], making it a high-income nation in five years."<ref name="BP-20170102">{{cite news|last1=Phoonphongphiphat|first1=Apornrath|title=Thailand 4.0: Are we ready?|url=http://www.bangkokpost.com/business/news/1173133/thailand-4-0-are-we-ready-|access-date=12 January 2017|work=Bangkok Post|date=2 January 2017}}</ref>

The government narrative describes Thailand 1.0 as the agrarian economy of Thailand decades ago. Thailand 1.0 gave way to Thailand 2.0, when the nation's economy moved on to light industry, textiles, and food processing. Thailand 3.0 describes the present day, with heavy industry and energy accounting for up to 70 percent of the Thai GDP.<ref name="BP-20170102"/> Thailand 4.0 is described as an economy driven by high-tech industries and innovation that will lead to the production of value-added products and services. According to General [[Prayut Chan-o-cha]], the prime minister, Thailand 4.0 is composed of three elements: 1. Make Thailand a high-income nation, 2. Make Thailand a more inclusive society, and 3. Focus on sustainable growth and development.<ref name="TBN-20160915">{{cite news|last1=Languepin|first1=Olivier|title=Thailand 4.0, what do you need to know?|url=https://www.thailand-business-news.com/economics/54286-thailand-4-0-need-know.html|access-date=12 January 2017|work=Thailand Business News|date=15 September 2016|archive-date=30 September 2021|archive-url=https://web.archive.org/web/20210930010445/https://www.thailand-business-news.com/economics/54286-thailand-4-0-need-know.html|url-status=dead}}</ref>

Critics of Thailand 4.0 point out that Thailand lacks the specialists and experts, especially in high-technology, needed to modernise the Thai industry. "...the government will have to allow the import of foreign specialists to help bring forward Thailand 4.0," said Somchai Jitsuchon, research director for inclusive development at the [[Thailand Development Research Institute]] (TDRI). "...that won't be easy as local professional associations will oppose the idea as they want to reserve those professional careers for Thais only".<ref name="BP-20170102"/> He went on to point out that only 56 percent of Thailand's population has access to the Internet, an obstacle to the creation of a high-tech workforce. A major thrust of Thailand 4.0 is encouraging a move to robotic manufacturing. But Thailand's membership in the [[ASEAN Economic Community]] (AEC), makes cheap workers from neighbouring countries even more readily available, which will make it harder to make the economic case to switch to robots. Somchai also pointed out that the bureaucratic nature of the Thai government will make realisation of Thailand 4.0 difficult. Every action plan calls for results from several ministries, "all of which are big, clumsily-run organisations" slow to perform.<ref name="BP-20170102"/>

In September 2020, World Bank forecast that Thai economy would contract 8.9% by the end of the year due to [[COVID-19 pandemic in Thailand|COVID-19 pandemic]].<ref>{{cite news |title=ธ.โลกประเมินเศรษฐกิจไทยปีนี้ ถดถอยมากที่สุดในภูมิภาคอาเซียน |url=https://www.bbc.com/thai/thailand-54338090 |access-date=11 October 2020 |work=BBC ไทย |date=29 September 2020 |language=th}}</ref> The Thai government cut [[jet fuel tax]] since February 2020.{{cn|date=January 2024}}<br><br>In August 2024, the dismissal of Thai Prime Minister Srettha Thavisin exacerbated Thailand's economic difficulties, impeding the implementation of significant financial measures. This political upheaval intensified existing issues such as high household debt and economic stagnation, further undermining investor confidence and economic stability.<ref>{{Cite news |last1=Sriring |first1=Orathai|last2=Ghoshal|first2= Devjyot|date=2024-08-15 |title=Political turmoil threatens prospects of Thailand's floundering economy |language=en |work=Reuters|url=https://www.reuters.com/markets/asia/political-turmoil-threatens-prospects-thailands-floundering-economy-2024-08-15/ |access-date=2024-08-21}}</ref>