Gross Domestic Product of Thailand. GDP growth rates. Income Disparity between the Provinces.

Updated October 2011 with latest available data.


Source : World Bank (update October 2011)

Growth evaluated every 5 years.
The 1997 crisis really set Thailand back.

Thailand Gross Domestic Product has been growing substantially over the last few decades (see graphs below). Between 1960 and the Asian crisis of 1997, GDP annual growth oscillated between 5 and around 10 percent per year. From 1988 to 1990 there was growth substantially higher than 10 %.

The Asian economic crisis of 1997 caused the first (and substantial) drop into negative territory. Afterwards growth overall seems to trend around 5 % per year. A second dip into negative territory occurred with the global crisis of 2008-2009 with negative growth of 2.3 % in Thailand in 2009. Growth in 2010 was measured at 7.8 %, this despite significant policital disturbances.
At the end of 2011 it appears economic growth will be quite moderate for the year, as the economic impact of severe flooding in September-October, makes progressive downgrades inevitable. Estimates are between 3.5 and 4.5 % growth for the year (likely to be adjusted).

GDP per capita (current US $) in 2010 was 4,613 US dollar,

The World Bank sets the GDP per capita (PPP method) at 8,490 US Dollars for 2010.

Growth rates this decade (World Bank) :
(provisional data show growth of only 1.1 % for 2011,
after a contraction of 5% during the last quarter,
due to severe flooding)

What is even more interesting than the GDP figures for the whole of Thailand, are the data for the different regions and provinces of the country. The static data for 2008 (as provided by the Office of the National Economic and Social Development Board of Thailand (NESDB), show that there are great differences in Gross Domestic Product (GDP) per capita between the different regions and provinces..
The Gross 'Provincial' Product in the Northeast (Isaan) and to a lesser extent in the North, is substantially lower than in Bangkok, the Central and the Eastern Region. The Gross Provincial Product of the Southern and Western Regions is situated in between.
GDP in Bangkok and surrounding provinces is close to 8 times bigger than in the poorest (and most populated) Isaan Region of Thailand.
Note that the data provided here are expressed in Thai baht and indicate real GDP, as compared to the data provided by the World Bank which show the PPP value.
In short, real GDP has reached about 4,000 U.S. Dollar per year for the whole country, while Gross Domestic Product by Purchasing Power Parity method is equivalent to about 8,000 U.S. Dollar.

	Region : GDP per capita* : Bangkok and Vicinity 327,321 Central Region 241,297 Eastern Region 332,798 Northern Region 69,773 North Eastern Region 42,968 Southern Region 98,743 Western Region 105,851 All of Thailand 136,511     * Real GDP in Thai Baht Source : Office of the National Economic and Social Development Board (NESDB) Note : not updated for 2009, but the overall picture stays similar.

The static latest GDP numbers of course do not reveal recent trends in income across Thailand. When looking at the data as provided by NESDB for the period between 2001 and 2008, it is clear that there is a pronounced difference in GDP growth rate between Bangkok (and its surrounding provinces) and the other regions of Thailand.

GDP growth in Bangkok is rather modest. The two regions with the fastest GDP growth are the Central and Eastern Region. Also the Northeast and the North are growing more than 1.5 to 2 times faster than Bangkok. Intuitively, we had thought that Bangkok would be ever getting richer when compared with the countryside, but apparently this is not the case. While the Northeast and the North of the country still have an enormous way to go, the development is promising. For all his faults, the policies of the Thaksin Shinawatra governments between 2001 and 2006 ( universal health care, a farm debt moratorium, village microcredit programs, entrepreneurial programs and rice price pledging schemes) likely have been beneficial.

GDP growth in Thai baht from 2001 and 2009 for different regions of Thailand.

GDP growth rates in different regions of Thailand (2001 GDP set to =100).
Notice that Northeastern and Northern Region show growth despite overall downturn in 2009.

The fundamental problem is the way GDP is generated throughout the country. Agriculture which employs 42.6% of the labor force generates only 11.4% of GDP. While industry employs about 20.2%, it generates 44.5% of total GDP. Services employing 37.1% generate 44.1% of GDP.
Overall, prices for rice and other farm produce, are related to market forces, and to a large extent beyond government control. Better education (there is much less access to higher education in the provinces) may have benefits in the long term. While the populist policies of Thaksin Shinawatra likely had some positive effects, an NESDB in 2007, indicated that a lot of the provided funds were spent on consumption, and not on measures creating sustained income gains.
Of particular worry is that political parties in Thailand are not ideology based, and there would be a substantial gain for the poor and farmers if a reliable 'Labour' Party could be established.
Needless to say, the income disparity that presently exists and will continue to exist for a long time has negative social and political effects.

For a substantial overview of the Thai economy (latest report 2009) overall and in the provinces, check out this NESDB file. Hopefully the link stays active.

More Data : GDP data for all the Regions and Provinces of Thailand