Thailand is an emerging economy and considered as a newly industrialized country. After enjoying the world's highest growth rate from 1985 to 1996 – averaging 12.4% annually – increased pressure on Thailand's currency, the baht, in 1997, the year in which the economy contracted by 1.9% led to a crisis that uncovered financial sector weaknesses and forced the Chavalit Yongchaiyudh administration to float the currency, however, Prime Minister Chavalit Yongchaiyudh was forced to resign after his cabinet came under fire for its slow response to the crisis. The baht was pegged at 25 to the US dollar from 1978 to 1997, however, the baht reached its lowest point of 56 to the US dollar in January 1998 and the economy contracted by 10.8% that year. This collapse prompted the Asian financial crisis.
Thailand's economy started to recover in 1999, expanding 4.2% and 4.4% in 2000, thanks largely to strong exports. Growth (2.2%) was dampened by the softening of the global economy in 2001, but picked up in the subsequent years owing to strong growth in Asia, a relatively weak baht encouraging exports and increasing domestic spending as a result of several mega projects and incentives of Prime Minister Thaksin Shinawatra, known as Thaksinomics. Growth in 2002, 2003 and 2004 was 5–7% annually. Growth in 2005, 2006 and 2007 hovered around 4–5%. Due both to the weakening of the US dollar and an increasingly strong Thai currency, by March 2008, the dollar was hovering around the 33 baht mark.
Thailand exports an increasing value of over $105 billion worth of goods and services annually. Major exports include Thai rice, textiles and footwear, fishery products, rubber, jewellery, cars, computers and electrical appliances. Thailand is the world's no.1 exporter of rice, exporting more than 6.5 million tons of milled rice annually. Rice is the most important crop in the country. Thailand has the highest percentage of arable land, 27.25%, of any nation in the Greater