Introduction

Thailand is a newly industrialized country. Its economy is heavily export dependent, with export
accounting for more than two-thirds of its gross domestic product (GDP). Development in agriculture
since the 1960s have supported Thailands transition to an industrialised economy. As recently as
1980, agriculture supplied 70 percent of employment. In 2008 agriculture, forestry and fishing
contributed 8.4 percent to GDP in rural areas, farm jobs supply half of employment. Rice is the most
important crop in the country and Thailand had long been the worlds number one exporter of rice.
Manufacturing industry in Thailand of one of the important activities to promote economic growth
and development. Telecommunications and new service trade industry are the focus of industrial
expansion and economic competitiveness. Tourism contributes directly to increase the GDP in
Thailand. The purpose of this assignment is to analysis how the economy of Thailand from 2008 to
2017 affected by the production out performance, labour market and the price level.
 Production output performance analysis

Real Gross Domestic Product

The real gross domestic product is measures of national income and output for a given countrys
economy. The gross domestic product is equal to the total expenditures for all final goods and
services that produced by the nations economy during a given year when the value of economic is
fixed or within the country in a stipulated period of time. It is calculated as follows:

Real GDP = Nominal GDP / GDP Deflator X 100

Thailands economy grew by 3.2% in 2016, an increase of 2.9% in 2015, thanks to the governments
stimulus measures to increase public investment by 9.9%.
Over the same period, the economy has also benefited from an increase in private consumption.
The growth rate of private consumption has increased form 2.2% in 2015 to 3.1% in 2016. With the
increase in public investment and private consumption, together with a recovery in exports,
Thailands GDP growth is expected to rise by 3% in 2017.
Real Gross Domestic Product Annual Growth Rate

The real GDP growth rate is the annual percentage change of the real GDP. This is used to
measures how good or bad the economy is performing. It does this by comparing one quarter of
the countrys economy output to the last.

The formula of the real GDP growth rate is as below:

Real GDP Growth Rate = Real GDP (Y2)-Real GDP (Y1) / Real GDP (Y1) X 100

In order to further stabilize the national economy, the government of Thailand has accelerated the
implementation of the national reform measures, including the Thailand 4 policy to promote the
modernization of the national economy.
According to the relevant policies, the country has chosen 10 innovative industry as a new growth
engine, in order to help build intelligent and digital economy, including a new generation of intelligent
electronic products, automotive, biotechnology, robotics, biofuels, digital services, health care, and
high-end medical tourism etc..
Real Gross Domestic Product Per Capita

GDP Per Capita is a measure of the average income per person of a country. When GDP per capita
increase productivity will increase. As a result, the economy will growth. The living standard depends
on it, which means the higher of GDP per capita, the higher of living standard. The formula of the
real GDP per capita as below:

GDP per capita = Real GDP / Population

The government of Thailand to promote the Thailand 4 strategic framework, the Thailand
government is giving priority to promoting the Eastern Economic Corridor project, to the east coast
of Chonburi, and three Fu Bei Liu Rayong development as the most senior ASEAN Economy
development centre. According to the prediction of the government of Thailand, the eastern
economic corridor after fully open, Thailands economic growth rate from the current 3% to 5% and
each year can increase of 100 billion-baht ($43 billion) tax, an annual decrease of 400 billion baht
($11 billion 500 million) of the logistics transportation loss, and create 100 thousand jobs per year.
According to the plan, Thailand will invest 1 trillion and 500 billion baht (US $43 billion) for the
corridor within five years. The Prime Minister of Thailand stressed that domestic and foreign
investment and private sector participation were crucial to the plan. To this end, the government of
the Thailand revised the investment promotion act and formulated the Eastern Economy Corridor
act and the competitiveness enhancement act. The new law will provide investors with new
investment right, including a competitive fund of 10 billion baht, longer tax breaks, investment tax
subsidies, research and development for import materials.
 Labour market analysis

Unemployment

Unemployment is defined as someone is energetically looking for a job but is not able to get a new
job. It is generally stated as a percentage, the formula of the unemployment rate as below:

Unemployment Rate = Total number of ppl unemployment / Labour Force X 100

THAILAND LABOUR FORCE PARTICIPATION RATE

Labour force participation rate is the proportion of the population ages 16 and older that is
economically active: all people who supply labour for the production of goods and services during a
specified period. Thailands unemployment rate is low, reported as 0.9 percent to the first quarter of
2014.
This is due to a large proportion of population working in subsistence agriculture or on other
vulnerable employment (own-account work and unpaid family work).
The labor market prospects for the next 5 years, (Thailand's Manpower Group Manpower Group
Marketing Manager Su Ti Dapointed out that the main position is the most serious science labor
shortage, far higher than the liberal arts and engineering, there is no specific skills required
position, some jobs need to hire foreign workers through the solution, such as Kampuchea, Laos,
Burma and Vietnam, the future may even need to hire foreign workers in South Asia, reason with
the neighboring countries and open economic development, some from neighboring labor or
choose to go back to the motherland development.
(Thailand serious labour shortage) Thailand labor shortage continues to deteriorate, the problem is
not that the working population is insufficient, but professional skills and market demand of the
working population is inconsistent, choosing a part of a new generation of young people with, so
whether economic growth is slowing down, the Thailand labor market there has been a shortage
of labour.
Price level analysis

Inflation refers to an overall increase in the Consumer Price Index (CPI), which is a weighted
average of prices for different goods. The set of goods that make up the index depends on which
are considered representative of a common consumption basket. Therefore, depending on the
country and the consumption habits of the majority of the population, the index will comprise different
goods. Some goods might record a drop in price, whereas others may increase, thus the overall
value of the CPI will depend on the weight of each of the goods with respect to the whole basket.
Annual inflation, refers to the percent change of the CPI compared to the same month of the previous
year.

Thailand Inflation

Thailand Ministry of Commerce released the latest data show that in 2017April this year,
Thailand's inflation rate rose by 0.38% over the same month last year, the thirteenth consecutive
month of growth, but the growth rate has slowed down. Data show that in January this year,
Thailand's inflation rate rose 1.55% year-on-year, followed by an increase in monthly decline. In
the first 4 months of this year, the cumulative inflation rate rose 1.03% year on year. (Jingnan,
2017) Thailand Department of Commerce officials said that in April inflation slowed down, mainly
this year without drought, the month of fruit and vegetable prices fell sharply, while the same
period last year due to drought led to a sharp rise in prices of fruits and vegetables. In addition,
prices of eggs and dairy products also declined in April, which led to negative growth in the price
of food and non-alcoholic beverages. However, the non-food and beverage price index is still
growing. (Source by China News Agency, Bangkok)
Thailand Consumer Price Index (CPI)

(Thailand's commerce ministry) said Thailand's CPI index rose by 1.55% in January. CPI rose
mainly from international oil and food price increases. Expected annual CPI increase is still in the
1.5-2.0% forecast range. An increase of 1.55% has hit a new high in almost 28 months. (the head
of the trade policy and Strategy Office of the Ministry of Commerce in Thailand) said Thailand's
CPI index was 100.75 in January, up 1.55% from a year earlier, an increase of 1.66% compared
with the previous month. The official said, CPI mainly from the increase in oil and food prices rose
sharply, including food and non-alcoholic beverages index rose 1.53%, and other non-food and
non-alcoholic beverages index rose 1.55%.But the official stressed that the Ministry of Commerce
in 2017 CPI index increase interval set for 1.5-2.0%, which is based on the results of the following
factors, the first is the annual economic growth of 3.25%, international oil prices remain at $45-55
dollar a barrel and the dollar against the Thai baht intermediate exchange rate between 35.5-37.5
dollar / baht.
 Conclusion

Future development of Thailand performance depends on continued reform of the financial sector,
corporate-debt restructuring, attracting foreign investment and increasing export.
Telecommunications, roads, electricity generation and ports showed increasing strain during the
period of sustained economic growth. Thailand is experiencing a growing shortage of engineers and
skilled technical personnel. Thailand needs to make better use of its natural resources and talent to
get more value from what is being produced. The statement notes that new ideas are necessary in
order to complement our existing capital.