With a population of around 72 million, Thailand is one of the largest economies in South-East Asia and a key player in the region. Strategically located between Myanmar, Laos, Cambodia and the Gulf of Thailand, the country has enjoyed sustained economic growth and industrial diversification in recent decades, thus making it a market of great interest to international and Italian investors.
Thailand is characterised by a rich cultural diversity, with a population composed of various ethnic groups, including Thai, Chinese, Malay and the so-called “hill tribes”. This cultural plurality is reflected in traditions, languages and daily practices, making the country a crossroads of Asian influences. The huge capital, Bangkok, with more than 10 million inhabitants, is the beating heart of the country, an emblem of modernity and tradition living harmoniously side by side.
The Thai economy between industrial development and resilience
Thailand is a major economic player in South-East Asia. The country has been able to turn its key geographical position into an economic advantage, thus becoming a sort of hinge between East and West and a crucial hub for global trade. A role that the government aims to strengthen even further, for instance through the ambitious “Land Bridge” project in the south of the country – i.e. the plan to build a rail and highway corridor, which would connect the coasts of the Gulf of Thailand with those of the Andaman Sea, thus opening up an alternative route to the already congested Straits of Malacca.
In recent decades, Thailand has witnessed fast industrialisation, moving from an economy with a very strong agricultural component to a diversified economy with a strong presence of manufacturing and technology industries. This change has been fostered by the country’s opening to foreign investment, particularly from Japan, after the Plaza Agreement of 1985 that devalued the US dollar, making the Thai market more competitive.
Thailand’s economic resilience was shown during global crises such as the Asian financial crisis of 1997 and the global financial crisis of 2008. Despite the severe initial impact, the country has been able to recover quickly thanks to earlier infrastructure investment and a highly export-oriented economy. Adherence to fiscal discipline and prudent economic expansion have helped stabilise the economy.
Besides manufacturing, Thailand is still a major exporter of rice – an essential commodity for global food security – and has developed a sizeable tourist sector, which accounted for around 20 per cent of national GDP in 2019. Although the pandemic hit tourism hard, the country is experiencing recovery, partially thanks to a growing presence of “digital nomads”, attracted by the low cost of living and business-friendly environment. Other key Thai export sectors include cassava, of which Thailand held 46% of the global market in 2023. The country has also established itself as a leader in the export of condoms, with a 44% share of the global market. Canned pineapple is also a major export, accounting for 36.4% of the global total. Finally, Thailand has a significant share of the world market for canned tuna (24.8%).
Thailand is experiencing a phase of slightly declining but potentially more stable growth than in past decades. The government has taken measures to balance the inflow of foreign capital with the preservation of national wealth, thus creating an environment fostering foreign investment without significantly affecting economic sovereignty.
In 2023, the Thai economy grew by 1.9 per cent, reaching a GDP of USD 514.9 billion. Key sectors include tourism, agriculture, manufacturing and financial services. The Eastern Economic Corridor (EEC) is a strategic industrial development zone, focusing on sectors such as automotive, electronics, medical tourism and biotechnology. Thailand is also at the forefront of the transition to renewables, with significant investment in solar, wind and hydroelectric energy. These projects are not far from the Italian and European green transition policy lines (including the Italian NRRP under the Next Generation EU) and strongly pursued by the last governments, which condensed them into the so-called “Bio-Circular-Green” model (BCG).
Despite the fact that the country’s economic potential is still partly held back by over-dependence on specific sectors and by some problematic issues, Thailand remains a growing economy, with a strong presence in the agricultural, tourism and industrial sectors, and with considerable development prospects in the technology and export sectors.
Main cities and development areas
In addition to Bangkok, other important areas include the city of Chiang Mai in the north, known for its beautiful temples and verdant landscapes, and coastal provinces such as Chonburi and Phuket, epicentres of tourist and business activity. The Eastern Economic Corridor (EEC) includes areas such as Laem Chabang and Map Ta Phut, which host crucial ports for trade and energy industry.
