Thailand 's economy has always been an export economy and existed as a decentralized free enterprise. All the Thai governments have favored an open investment pattern, emphasizing on creating a favorable market conditions for attracting large foreign direct investment. In the early 1980s and during the 1990s, Thai economy is one of the fastest growing economies in the world was recording an average growth rate of 9 percent of all fell during the July 1997 Asia economic crash.
> Thailand 's economy was hardest hit during the crisis, made by a whopping 75 percent. Until 2 July 1997, enjoyed a value of 25 baht against the U.S. dollar. But because of the crisis, the baht to dollar exchange rate dipped suddenly to half its current value. To finance several major companies, including the financing of a were not able to keep this crisis, and collapsed. With more foreign investors from their investments from the overseas market, the volatile and corrupt politicalSituation of the country to the crisis. IMF had approved a package of around 20 billion U.S. dollars to rescue the Thai economy.
Until 1997, the South Asian countries Thailand, were South Korea, Malaysia, Philippines, Indonesia and Singapore as the best markets to foreign investors due to the high growth rate and heavy returns. Due to certain political developments in the West, investors started removing their investments from the market. Thus, aDomino effect and caused the economic collapse. There are several other factors that have contributed to the crash. Increase in interest rates in the U.S. markets did, export growth and an open and liberal market policies resulted in a loss of confidence in East Asian markets.
