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Assignment Group 4 Members :

1.
2.
3.
4.
5.
6.

ANNISA SIVALINGAM
KHOR SEE YING
TAN HAN LOON
POH ZI EN
PHUAH ZHIN
GOH SUEKI

* 1.1Economic

Background of
Thailand and Egypt

Economic Background of
Thailand
Thailand is the second-largest economy in Southeast
Asia, after Indonesia
Rice is the most important crop in the country and
Thailand had long been the world's no.1 exporter of rice.
Thailand leads the world in producing and exporting rice,
rubber, canned pineapple, and black tiger prawns.
It leads the Asian region in exporting chicken meat
export and several other commodities, and feeding more
the four times its own population from.
Thailand achieved steady growth due largely to industrial
and agriculture exports - mostly electronics, agricultural
commodities, automobiles and parts, and processed
foods.

Economic background of Egypt


Egypt is one of the Middle East's most
versatile economies, which the sectors of
agriculture, industry, tourism and services
engaged in comparable proportions in its
basic configuration.
Egypt has produce cotton, rice, wheat, corn,
sugarcane, sugar beets, onions, and beans
due to the Warm weather and plentiful water
. Cattle, water buffalo, sheep, goats, and
donkeys are raised, and there is a fishing
industry.
Petroleum and natural gas (found mainly in
the Gulf of Suez) are produced

2.1 GDP(Gross Domestic


Product) Real Growth Rate

The Comparison of GDP between


Thailand and Egypt from year 19802013

Thailand

Maximum GDP(Real Growth Rate)


-In year 1988(13.0)
Minimum GDP(Real Growth Rate)
-In year 1998(-10.5)
Average value is 5.4%

Egypt

Maximum GDP(Real Growth


Rate)
-In year 1980(10.0)
Minimum GDP(Real Growth
Rate)
-In year 1991(1.1)
Average value is 4.8%

Reason that affect


GDP(Real Growth Rate)in
Thailand
In

year 1988(13.0%)
- The few sector that boosted the GDP real growth rate
of Thailand such as:
(I) Industrial output (over 10% expected)
(II) Agriculture (over 7%)
(III) Construction (over 10%)
In year 1998(-10.5%)
- Global economic slump

Reason that affect GDP(Real


Growth Rate)in
Egypt
-In year 1980(10.0)
partook of the oil
boom and suffered the
subsequent slump
oil exports,
remittances, foreign
aid, and grants
-In year 1991(1.1)
revolution

2.2
COMPARISON
OF
UNEMPLOYME
NT RATE

THAILAND.
1997
Investment had increase from 1,450.2
billion of Baht to 1,893.7 billion of Baht in
1996.
There was a over borrowing to and poor
investment decision.
Drove up the interest rates in 1997.
Many companies had to stop workers and
financial institution had to be closed.

2010

Due to the fast developing industry like


agriculture ,fishery ,mining and
minerals .
This sectors needed workers, which
eventually increases the employment
opportunities.

EGYPT
1995
Production and consumption was
imbalance.
Export and import was
imbalance.
Saving and investment was also
imbalance.
Over populated.

COMPARISON
THAILAND
Lower average rate of
unemployment.
High growth rate which
caused investors to
overlook some potential risk
related to their investment.
Also caused a false sense of
security which made
borrowing easier.(over )
Caused bankruptcy and
workers were laid off.

EGYPT
Higher average rate of
unemployment.
Womens are engaged
in agriculture and
home-based activities.
Educated females
faced high
unemployment
causing them to quit
searching.

2.3 Comparison of Inflation


Rate

35.00

Inflation rate of Thailand

30.00
25.00
20.00
15.00

Inflation rate,GDP deflator (annual %)


10.00

Egypt
Thailand
Average of
Egypt

5.00
0.00
-5.00
-10.00

Years

Maximum inflation rate is 20.33% in 1974.


-REASON: A serious economic crisis occurred in between 1997
and 1998.
Minimum inflation rate is -5.0% in 1970.
-REASON: The rising interest rates, declining demand and
prices for Thailand exports, and rising petroleum prices.

35.00

Inflation rate of Egypt

30.00

Inflation rate,GDP deflator (annual %)


25.00

Egypt
20.00

Thailand

15.00

Average of
Egypt

10.00
5.00
0.00
-5.00

Years
-10.00

Maximum inflation rate is 31.14% in 1987.


-REASON: Increase in the prices of imported foreign products
Minimum inflation rate is 0.17% in 1961.
-REASON: GDP per capita reaching an irregular percentage
of inflation rate which record a low of percentage in 1961.

*Comparison

* The average of the inflation rate

- Thailand is 3.56% while Egypt is 8.76%.

* Economy of Thailand is more stable compare


with Egypt which is less stable.

* Thailand performs better of inflation rate


compare with Egypt.

2.4 THE COMPARISON BETWEEN


ECONOMIC ACTIVITIES (BY SECTORS)
BETWEEN THAILAND AND EGYPT.

ECONOMIC ACTIVITIES
IN THAILAND
ECONOMIC ACTIVITIES
(BY SECTOR) IN
THAILAND
Agricultur
e Sector

Fisheries
Sector

Industrial
Sector

ECONOMIC ACTIVITIES IN THAILAND


(i)Agriculture Sector
Thailand is a major exporter in the world rice market.
Other crops include rubber, corn, soybeans, coconuts, tapioca,
and sugarcane.
Thailands agribusiness sector is one of the worlds largest
multinational corporations.

(ii)Fisheries Sector
Thailand also a major exporter of shrimp.
This sector was major importance to the economy as an earner of
foreign exchange.
The total exports of marine products was accounting for about
10 % in 1986.

(iii)Industrial Sector
Manufacturing is most important subsector of industry, which
accounted for 34.5 % of GDP in 2004.
Thailand became a centre for automobile manufacturing for the
Association of Southeast Asian Nations (ASEAN) market.
The extension of the automotive industry has increased
domestic steel production.

ECONOMIC
ACTIVITIES IN EGYPT

ECONOMIC ACTIVITIES
(BY SECTOR) IN egypt
Agricultur
e Sector

Industrial
Sector

Services
Sector

Egypt is a major
producer of
premium long
and extra-long
staple cotton.
Egypt is also a
substantial
producer of
wheat.

El Nasr
Automotive
Manufacturing
Company is
central to the
industry.
This company
manufactures
automobiles
under license
from many
leading brands,
such as Zastava
Automobili,
Daimler AG,
Peugeot and
Kia.

Services Sector

This sector
accounted for
87 % of total
export volumes
in 1960.

Egypt has a
well-developed
automobile
industry.

Industrial Sector

Agriculture Sector

ECONOMIC ACTIVITIES IN EGYPT

The most
important
services sector is
the Egyptian
tourism industry,
in term of high
employment and
incoming foreign
currency.
Tourism in Egypt
constituted 1 %
of the worlds of
tourism market in
2009 and 2010.
The historical
attractions of
tourism
especially in
Luxor, Aswan,
and Cairo.

* 2.5 The Import and Export

activities between Thailand


and Egypt

* Imports of Thailand
1. Raw material and intermediate
goods

56 % of total imports
crude oil, industrial chemicals,
mineral products and metals
2. Capital goods used for
manufacturing

25 % of total imports
3 main import partners
machinery, industrial tools, :

equipment and computers


3. Fuel and gas
19 % of total imports
petroleum, diesel, coal and gas

1. Japan - 20%
2. China 15%
3. The
European

* Exports of Thailand
1. Electronics, automobiles,

3 main export partners


equipment and machinery
are :
39.2 % of Gross Domestic Product
Electrical items, computers, cars,
1. China - 12%
trucks, tools and machinery
2. Japan - 10%
2. Service sectors
3. The United
24.9 % of Gross Domestic Product
States - 10%
Tourism, banking, financial services
3. Agricultural goods
8.4 % of Gross Domestic Product
Textiles, footwear, fishery products,
rice, rubber

* IMPORTS OF EGYPT
3 main import
partners are :

1. the United States 12.11%


2. China - 8.6%
3. Saudi Arabia 6.93%

1. Capital goods
32 % of total imports
Machinery, industrial tools,
equipment, computers
2. Crude oil products
25 % of total imports
Crude oil, diesel, gasoline, jet fuel
and gas
3. Machinery and electrical
equipment
15 % of total imports
General tools, consumer electronics
and home appliances

* EXPORTS OF EGYPT
1. Oil and other mineral
products
32 % of total exports
Refined petroleum, natural gas,
gold and iron ore
2. Chemical products
1. Italy - 12.13%
12 % of total exports
2. India - 7.6%
Fertilizer
3. Netherlands - 6.8%
3. Agricultural products and
livestock
11 % of total exports
Livestock and others fats, cotton,
textile, citrus fruits

*CONCLUSION

*THAILAND
*Financial collapse of the Thai baht in 1997,due to the

lack of foreign currency to support its fixed exchange


rate.

*Ways : Government should increase more interest bearing


debt.

*Airports shut-down

*Ways : Government should think of long-term


development strategy.

*Gross fiscal loss , large net loss in banking sector,


*

declining net interest margin , low capital levels and


intervening in weak bank.
Ways : Government should reform the regulatory
and supervisory frameworks.

* EGYPT
Problems
Economic crisis in all sectors.
240 billion Egyptian pound budget deficit
(14% of GDP).
Solutions
to increase efficient system of productivity.
Egyptian need to reorder their priorities.
Egyptian youth must have intellectual
ability and able to acquire skills and learn a
wealth that improves investment in Egypt.

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