Economy
Bangkok is the economic centre of Thailand, and the heart of the country's investment and development. In 2010, the city had an economic output of 3.142 trillion baht (approx. US$98.34bn), contributing 29.1 percent of the gross domestic product (GDP). This amounted to a per-capita GDP value of ฿456,911 ($14,301), almost three times the national average of ฿160,556 ($5,025). The Bangkok Metropolitan Region had a combined output of ฿4,773bn ($149.39bn), or 44.2 percent of GDP. Bangkok's economy ranks as the sixth among Asian cities in terms of per-capita GDP, after Singapore, Hong Kong, Tokyo, Osaka–Kobe and Seoul.
Wholesale and retail trade is the largest sector in the city's economy, contributing 24.0 percent of Bangkok's gross provincial product. It is followed by manufacturing (14.3%); real estate, renting and business activities (12.4%); transport and communications (11.6%); and financial intermediation (11.1%). Bangkok alone accounts for 48.4 percent of Thailand's service sector, which in turn constitutes 49.0 percent of GDP. When the Bangkok Metropolitan Region is considered, manufacturing is the most significant contributor at 28.2 percent of the gross regional product, reflecting the density of industry in the Bangkok's neighbouring provinces. The automotive industry based around Greater Bangkok is the largest production hub in Southeast Asia. Tourism is also a significant contributor to Bangkok's economy, generating ฿427.5bn ($13.38bn) in revenue in 2010.
The Stock Exchange of Thailand (SET) is located on Ratchadaphisek Road in inner Bangkok. The SET, together with the Market for Alternative Investment (mai) has 648 listed companies as of the end of 2011, with a combined market capitalization of 8.485 trillion baht ($267.64bn). Due to the large amount of foreign representation, Thailand has for several years been a mainstay of the Southeast Asian economy and a key centre in Asian business. The Globalization and World Cities Research Network ranks Bangkok as an "Alpha−" world city, and it is ranked 59th in Z/Yen's Global Financial Centres Index 11.
Bangkok is home to the headquarters of all of Thailand's major commercial banks and financial institutions, as well as the country's largest companies. A large number of multinational corporations base their regional headquarters in Bangkok due to the lower cost of the workforce and firm operations relative to other major Asian business centres. Seventeen Thai companies are listed on the Forbes 2000, all of which are based in the capital, including PTT, the only Fortune Global 500 company in Thailand.
Income inequality is a major issue in Bangkok, especially between relatively unskilled lower-income immigrants from rural provinces and neighbouring countries, and middle-class professionals and business elites. Although absolute poverty rates are low—only 0.64 percent of Bangkok's registered residents were living under the poverty line in 2010, compared to a national average of 7.75—economic disparity is still substantial. The city has a Gini coefficient of 0.48, indicating a high level of inequality.
Read more about this topic: Transport In Bangkok
Famous quotes containing the word economy:
“Quidquid luce fuit tenebris agit: but also the other way around. What we experience in dreams, so long as we experience it frequently, is in the end just as much a part of the total economy of our soul as anything we “really” experience: because of it we are richer or poorer, are sensitive to one need more or less, and are eventually guided a little by our dream-habits in broad daylight and even in the most cheerful moments occupying our waking spirit.”
—Friedrich Nietzsche (1844–1900)
“The aim of the laborer should be, not to get his living, to get “a good job,” but to perform well a certain work; and, even in a pecuniary sense, it would be economy for a town to pay its laborers so well that they would not feel that they were working for low ends, as for a livelihood merely, but for scientific, or even moral ends. Do not hire a man who does your work for money, but him who does it for love of it.”
—Henry David Thoreau (1817–1862)
“It enhances our sense of the grand security and serenity of nature to observe the still undisturbed economy and content of the fishes of this century, their happiness a regular fruit of the summer.”
—Henry David Thoreau (1817–1862)