Thailand is 514,000 sq. km. in area, about the size of France or Texas, with a population of 64.2 million. The Thai economy is predicted to post a growth rate of 4.6% in 2005, sustained by the government’s fiscal policy.Private consumption, is expected to remain brisk in the final quarter of the year, and to grow by 4.5 % for the year as a whole. Government consumption is expected to grow by 12.4%, due to factors such as pay raises for public employees and expenditures for job creation programs in the countryside.
 
Private investment is predicted to grow by 11.5% in 2005, reflecting increases in new and replacement demand for machinery and equipment and other factors. Public investment is expected to grow by 17.4%, primarily as a result of large-scale projects for building and improving social infrastructure, including the public transportation system.  

The outlook for overall production in the manufacturing sector is positive, especially in export-oriented industries. However, in some industries such as iron and steel, production is expected to decelerate due to prior stock accumulation There is a shortage of skilled labour in several sectors, such as the garments and leather industries. Meanwhile, the export-oriented foods industry is having difficulties finding unskilled workers.

In the monetary sector, commercial banks have begun to raise interest rates both on the deposit and lending sides, in order to maintain their deposit base as more depositors have been switching their funds to other instruments that offer higher returns. As for the property sector, new investments are likely to moderate, especially for new development projects. The outlook for exports is favourable especially that of electronics, garments, and frozen seafood. 

As a combined effect of these developments, Thailand’s economy is predicted to register a growth rate of 4.6% in 2005. The inflation rate of general prices, under the effect of rising prices of raw materials and other factors, is predicted to be 4.3%