Business Opportunities in Thailand

Thailand is the 27th largest export destination for the United States. Two-way trade in goods and services in 2013 was about $40 billion, with $26.1 billion in Thai goods exports to the United States and $11.8 billion in U. S. goods exports to Thailand. U. S. exports to Thailand increased by 8.6 percent from 2013, while U. S. imports from Thailand remained essentially flat. Thailand is 9th largest destination for U. S. exports in Asia. In ASEAN, Thailand ranks as the United States? 2nd largest export destination after Malaysia. Thailand, the second largest economy in ASEAN after Indonesia, is an upper middle income country with an open economy and a gross domestic product (GDP) of $375 billion in 2013. In 2013 Thailand?s GDP expanded 2.9%, a decrease from the previous year?s growth rate of 6.4%. Thailand?s economic prospects have been hampered by dampened consumer spending, higher household debt, and lingering political instability. Thailand?s 2014 GDP projections continue to show flat growth or possible contraction into 2014 due to the ongoing political conflict and lowered investor confidence. An export-dependent economy, Thailand exported a total of $219 billion worth of goods in 2013, accounting for 58% percent of its GDP. Exports in 2013 fell 2.4 percent, compared to a 14.3 rise in 2012. The contraction was due to soft global demand and low commodities prices. Together, China, Japan and the United States accounted for 31.7 percent of the market for Thai exports in 2013. Industrial production accounts for the second largest share of Thailand?s GDP at around 39%. Next is services (52%). Agriculture, long associated with Thailand, stands at 8%. Manufactured products are usually the top export, accounting for 86% of all exports in 2013. Electronics/electrical appliances and automobiles made up around one-third of total export value in 2012. Tourism, which is also vital to the Thai economy at roughly 6% of GDP, is suffering somewhat due to the protracted political conflict in the country.