Like other countries around the world, Thailand has been stuck in recession but experienced inflation in recebnt months. Higher food and commodity prices have increased inflationary pressures and the central bank of Thailand, the Bank of Thailand, increased interest rates in January to 2.25 per cent. Analysts expect that the Bank will raise rates by a further quarter of one percent at its next meeting.

One piece of good news for the country, however, is that it has finally emerged from recession. The country's National Economic and Social Development Board (NESDB) released figures which showed the Thai economy growing by 1.2 per cent in the last quarter of 2010. Much of the expansion was led by exports which are an important growth factor in the economy. Exports in 2010 rose by 28.1 per cent and in the last quarter of the month, net exports rose by 6.7 per cent compared to a decline of 14.5 per cent in the third quarter of 2010.

The Bank of Thailand has forecast growth of between 3 per cent and 5 per cent for 2011. This is a low rate compared to the strong growth the country experienced prior to the global downturn but a marked improvement on that which the country experienced for most of 2010. In the second quarter of 2010 the Thai economy shrank by 0.6 per cent and by a further 0.3 per cent before bouncing back in the fourth quarter thanks to the rise in exports.