THAILAND

Economic Freedom Score

25

World Rank:

67

Regional Rank:

11

Least
free 0

hailands economy is still struggling to regain its

Tseized
growth momentum more than a year after the military
power. Ongoing political uncertainty undermines

50

75
Most

100 free

63.9

Freedom Trend
66

the investment climate and keeps the countrys economic

dynamism below potential levels. Capital controls have
been eased, but authoritarianism coupled with populist
economic policies continues to deter flows of investment.
ECONOMIC FREEDOM SNAPSHOT
2016 Economic Freedom Score: 63.9 (up 1.5 points)
Economic Freedom Status: Moderately Free
Global Ranking: 67th
Regional Ranking: 11th in the AsiaPacific Region
Notable Successes: Trade Freedom
Concerns: Property Rights, Corruption, and Labor Freedom
Overall Score Change Since 2012: 1
The judicial system remains vulnerable to political interference under the military-controlled government, and
property rights are not strongly protected. Systemic corruption further undercuts the rule of law and hampers
stable long-term economic development.

BACKGROUND: Thailand has had 19 military coups since

becoming a constitutional monarchy in 1932. The period since
the ouster and exile of Thaksin Shinawatra in 2006 has been
particularly turbulent. Civilian government returned in 2007,
and Pheu Thai, the legacy party of the Thaksin government,
won an outright majority in the 2011 parliamentary elections.
Thaksins sister, Yingluck Shinawatra, became prime minister
and later, in spring 2014, was ousted from power in a military
coup led by Army General Prayuth Chan-Ocha. New elections, initially expected to be held in October 2015, have been
postponed until 2016. Since the 2014 coup, freedom of speech
and freedom of association have been severely restricted,
and leading politicians have been placed under house arrest.
The persistent political instability has negatively affected
the economy.

How Do We Measure Economic Freedom?

See page 467 for an explanation of the methodology

or visit the Index Web site at heritage.org/index.

65
64
63
62
61

2012

2013

2014

2015

2016

Country Comparisons
63.9

Country
World
Average

60.7

Regional
Average

59.0

Free
Economies

83.9
0

20

40

60

80

100

Quick Facts
Population: 68.7 million
GDP (PPP): $985.5 billion
0.7% growth in 2014
5-year compound annual growth 3.6%
$14,354 per capita
Unemployment: 0.9%
Inflation (CPI): 1.9%
FDI Inflow: $12.6 billion
Public Debt: 47.2% of GDP
2014 data unless otherwise noted.
Data compiled as of September 2015.

417

THAILAND (continued)
THE TEN ECONOMIC FREEDOMS
Score

RULE OF
LAW

Property Rights
Freedom from Corruption

Country

World Average

40.0
38.0
0

20

40

60

80

Rank

1Year
Change

69th
87th

0
+3.0

100

Corruption is widespread at all levels of Thai society. A cultural proclivity to view bribery as a
normal part of doing business and to equate cash payments with finders or consultants fees,
coupled with the low salaries of civil servants, reportedly encourages officials to accept illegal
inducements. The independent judiciary had been generally effective in enforcing property
and contractual rights but has been criticized for political bias.
Fiscal Freedom 81.1
GOVERNMENT
Government Spending 82.2
SIZE

73rd
40th
0

20

40

60

80

0.4
+0.8

100

The top personal income tax rate is 35 percent, and the top corporate tax rate is 20 percent.
Other taxes include a value-added tax and a property tax. The overall tax burden equals 16.2
percent of total domestic income. Government spending amounts to 24.3 percent of gross
domestic output. The budget balance remains in deficit, and public debt is at a level close to
50 percent of GDP.

REGULATORY
EFFICIENCY

Business Freedom
Labor Freedom
Monetary Freedom

76.3
62.5
70.9

43rd
80th
141st
0

20

40

60

80

+3.8
1.0
+1.0

100

With no minimum capital requirement, starting a business requires only four procedures, but
licensing requirements remain time-consuming. Labor regulations are relatively flexible, but
informal labor activity remains substantial. The military government indicted former Prime
Minister Yingluck Shinawatra in 2015 on criminal charges for her role in a controversial and
populist rice subsidy scheme that cost the country billions.

OPEN
MARKETS

Trade Freedom
Investment Freedom
Financial Freedom

77.6
50.0
60.0

87th
115th
38th
0

20

40

60

80

+2.2
+5.0
0

100

Thailands average tariff rate is 6.2 percent. Many agricultural imports face barriers. Foreign
investment in some sectors of the economy is restricted or capped, but there is no general
screening of foreign investment. Although foreign direct investment is officially welcome,
the government prohibits majority foreign ownership in many sectors. The financial system
remains relatively resilient and sound despite ongoing political uncertainty.

Long-Term Score Change (since 1995)

RULE OF LAW
Property Rights
Freedom from
Corruption

418

50.0
32.0

GOVERNMENT
SIZE
Fiscal Freedom
Government
Spending

+6.5
10.6

REGULATORY
EFFICIENCY

OPEN MARKETS

Business Freedom
+6.3
Labor Freedom
14.3
Monetary Freedom 6.8

Trade Freedom
+11.2
Investment Freedom
0
Financial Freedom +10.0

2016 Index of Economic Freedom