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Finance and Development

In: Business and Management

Submitted By rased2020
Words 5177
Pages 21
Executive Summary
Thailand is a newly industrialized and export dependent country. Although it is developing country its economic growth rate is sustaining over the long period of time. It is middle income country in the south-east Asia. In 1988 the GDP growth rate was 12%.Then there was economic boom in the country. The purpose of paper is to assess is to find out the economic condition of Thailand and its economic performance regarding different policies. The economic growth of Thailand is better than any other developing country. Over the ten years between 1987 and 1996, the average annual GDP growth rate was 9.4 percent; the growth rate of real exports was 14.5 per cent, while inflation was contained at 4.7 per cent. The high level of investment and the rapid growth had been supported by large inflows of foreign capital: in the period 1987–96, annual capital inflows were on average equal to 8.7 per cent of GDP. But there are some financial shocks in the economy. They are Asian financial crisis:1997-1998, Global financial crisis and flood of 2011and political instability of Thailand. These crises were recovered successfully. On 11 August 1997, the IMF unveiled a rescue package for Thailand with more than $17 billion, subject to conditions such as passing laws relating to bankruptcy (reorganizing and restructuring) procedures and establishing strong regulation frameworks for banks and other financial institutions. The IMF approved on 20 August 1997, another bailout package of $3.9 billion. At first the exchange rate policy was strict. But after the Asian crisis policy was changed to managed float which is flexible.
At the time of global financial crisis the government adopted some policies to recover this crisis. The Thai government has imposed three types of policy to rebuild confidence, gain economic recovery, and stimulate new economic growth. First, two phases...

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