Bangkok Economy

Bangkok is the capital, largest urban area and primary city of Thailand. Bangkok has a population of approximately 6,355,144 residents while the greater Bangkok area has a population of 11,971,000. The capital is part of the heavily urbanized triangle of central and eastern Thailand which stretches from Nakhon Ratchasima along Bangkok to the heavily Industrialized Eastern Seaboard. Bangkok is the economic center of Thailand, dominating the country's economy and dwarfing any other urban centers. More realistic but unclaimed estimates put the city's output as high as 210 billion dollars, accounting for 38 percent of national income and per capita income at 33,000 dollars. As of fall 2009, the index is one of Asia's top performing indices, up 58 percent since January.

Bangkok is home to the headquarters of all of Thailand's major commercial banks and financial institutions; 27 financial institutions hold at least 1 billion dollars in total assets. A large number of multinational corporations base their regional headquarters in Bangkok due to the lower cost of the workforce and firm operations relative to other major Asian business centers. Thirteen Bangkok-based companies make the Forbes 2000 list annually. The list includes the largest Thai bank, Bangkok Bank, the country's largest listing as well as the state-owned energy firm PTT, and the renowned Charoen-Phokphand agri-foods conglomerate.[citation needed]

The market for flights to enter Laos and Cambodia is heavily dominated by airlines based in Bangkok such as THAI Airways International, Bangkok Airways, and the multitude of low cost airlines in Thailand. Tourism is a significant contributor to Thailand's economy, providing about 5 percent of GDP. Bangkok is Thailand's principal international gateway and a destination in its own right. Income inequality is a growing issue in Bangkok, especially between relatively unskilled lower-income immigrants from rural provinces in Thailand and neighboring countries and middle-class professionals (45% of registered residents), business elites, and retired and working foreign expats. About 7 percent of Bangkok's population (excluding illegal immigrants who constitute about 5-8 percent of population) live below the poverty line compared to the national average of 9 percent.[citation needed]

We forecast that the Thai economy in 2010 will expand by 2.6-4.5 percent, with our base scenario 3.9 percent. "Initially, we forecast GDP growth of 4.5-5.5 percent but we're in the process of revising it down ... Average GDP for the entire year should still grow over 4 percent."

Tourism accounts for 6 percent of gross domestic product and employs at least 15 percent of the workforce. Occupancy rates in the budget hotels in the Khao San Road area popular with backpackers have plummeted from a normal 80 percent to, at best, 10 percent. The second-largest, Krung Thai Bank has said both profit and loan growth would be hit by the unrest from April. ($1=32.37 Baht) The government sought balanced economic growth and the closing of the income gap, along with improvement of the inequitable distribution of social services. Social and economic trends included increasing urbanization, expansion of industrial activities at a faster rate than agriculture, and growth of income in the service industries. Because foreign trade and investment were an important part of the economy, external conditions greatly influenced the country's economic performance. Thailand's harvests exceeded domestic consumption, enabling the country to export large quantities of food each year. Although Thailand was a member of the Association of Southeast Asian Nations (ASEAN) with preferential trading arrangements, its principal trading partners were Japan, the United States, countries of the European Economic Community (EEC), and Australia.

Long-term prospects depended greatly on the effects of international economic conditions on the Thai economy. Further growth of the economy depended, in part, on the success of the Thai government in improving economic efficiency and increasing domestic savings through development planning.