Is Thailand considered a rich or poor country?

When you think of Thailand, it can be tricky to define whether it’s a rich or poor country. On one hand, it boasts skyscrapers, luxurious malls, and a booming tourism industry. On the other hand, you might also encounter rural areas where people live more modestly. So, is Thailand rich or poor? Well, the answer depends on how you look at it.

Current status of Thailand

Over the last few decades, Thailand’s economy has grown a lot, making it one of the strongest economies in Southeast Asia. Now Thailand is considered a middle-income country by World Bank. Its economy is the second-largest in Southeast Asia, behind Indonesia. But despite its growth, wealth isn’t evenly distributed across the population, and the gap between the rich and poor remains one of the most significant issues in the country.

The nation has a relatively low poverty rate (around 6.8% as of the latest reports), but many still live in modest conditions, especially in rural areas. At the same time, there are a significant number of wealthy individuals and even billionaires concentrated in city areas like Bangkok. So, Thailand isn’t ‘poor,’ but it’s not what you’d call ‘wealthy’ by Western standards either.

Economy and income levels

Thailand’s economy is powered by several sectors, with tourism being a big player. It makes up around 20% of the country’s GDP. Even after the blow from COVID-19, tourism is making a strong comeback in 2024. Thailand also exports agricultural goods like rice, rubber, and sugar, and its manufacturing sector, particularly in the automotive and electronics industries, is booming. Brands like Toyota and Honda have big manufacturing plants here, further boosting the economy.

In terms of income, the average monthly salary in Thailand is about 20,000 to 30,000 baht (roughly US$550 to US$850). This might seem low compared to Western countries, but the cost of living in Thailand is also much lower. In cities like Bangkok or Phuket, prices are higher but in the smaller towns, you can live comfortably on much less.

With that being said, Thailand still faces economic challenges. High household debt and political instability are ongoing issues. Inflation, while not as bad as in some Western countries, is another concern. However, from a visitor’s perspective, Thailand remains a budget-friendly place. Compared to Europe or the US, the cost of living is much lower. It’s this affordability that makes the country so attractive to expats and tourists.

Wealth distribution and class divide

One of Thailand’s biggest economic challenges is its wealth distribution. The country has a high level of inequality. The richest 1% of Thais own a notable portion of the country’s wealth, and Bangkok is home to many of the country’s millionaires and billionaires. In contrast, rural areas in the northeast (Isaan region) are often much less developed, and the average income there is significantly lower.

This wealth gap leads to a clear division between social classes. Bangkok, in particular, has pockets of extreme wealth, with high-end shopping malls, luxury condos, and expensive cars, while just a few streets away, you may find communities struggling to get by.

Cost of living and quality of life

Thailand’s low cost of living is one of the main reasons why many expats choose to live here. You can enjoy a comfortable lifestyle at a fraction of what it would cost in Western countries. For example, renting an apartment in Bangkok can range from 10,000 to 30,000 baht per month (US$300 to US$900), depending on the area. If you’re living outside the major cities, you could pay even less.

Food in Thailand is incredibly cheap. You can find delicious street food for as little as 30 to 50 baht ($1 to $2) per meal. Even dining at a mid-range restaurant won’t set you back too much. Thailand’s cost of living is low mainly because of lower wages and production costs.

However, while this benefits expats and tourists, the income gap between locals and foreigners can be wide. The average salary in Thailand is between 20,000 to 30,000 baht per month ($550 to $850), which is manageable for many Thais but wouldn’t allow for much luxury compared to what expats are used to.

But cost aside, the quality of life in Thailand can be high. The country offers excellent healthcare, a warm climate, and a welcoming culture. While rural areas might lack some conveniences, cities like Bangkok or Chiang Mai provide access to international schools, world-class hospitals, and a range of modern facilities.

For those looking to retire in Thailand, the country offers a laid-back lifestyle, a warm climate, and friendly locals. It’s no wonder why so many retirees from Western countries choose to settle here. However, adjusting to the slower pace, especially in rural areas, might be challenging for some.

Thailand vs other countries

Here’s an overview comparing Thailand’s wealth with other countries based on GDP per capita, which is a common indicator of economic wealth especially to put into context how rich Thailand is.

Note: Values are approximate as of 2024 and rounded for simplicity. The values are based on GDP per capita and related economic data sourced from World Bank.

While Thailand may not reach the wealth levels of Singapore or South Korea, it holds a strong position compared to many developing countries. For visitors and expats, this combination of affordability and opportunity makes Thailand an appealing destination for living and exploration.

Is Thailand a good country to live in?

For many expats, Thailand offers an appealing balance between cost and quality of life. If you’re after a comfortable lifestyle without breaking the bank, Thailand can provide that. However, you should also consider the challenges, such as navigating language barriers, adjusting to local customs, and understanding the wealth disparities.

Thailand’s friendliness and hospitality are major draws. You’ll often hear about the ‘Land of Smiles,’ and many expats find the local culture warm and welcoming. Whether you’re in Bangkok’s bustling streets or a quieter beach town, it’s easy to see why people fall in love with the country.

Is Thailand safe for expats and tourists?

Thailand is generally a safe country to visit or live in. Violent crime is relatively low, and most tourists don’t run into any serious issues. That said, like in any popular tourist destination, there are some petty crimes and scams to watch out for, especially in busy areas like Bangkok, Phuket, or Pattaya.

For female travellers, Thailand is considered quite safe. Bangkok, despite being a bustling metropolis, has many well-lit areas and busy streets, making it a fairly safe place for solo female travellers. But, as always, it’s smart to stay cautious, especially late at night in unfamiliar areas.

Natural disasters, such as flooding, can sometimes be a concern during the rainy season, and while political protests occasionally happen, they rarely affect daily life for expats or tourists. In terms of safety, Thailand ranks well when compared to other Southeast Asian countries, though Vietnam and Malaysia are also seen as safe alternatives for travellers.

Is Thailand getting old before getting rich?

A term that’s often brought up when talking about Thailand’s economic future is the ‘middle-income trap.’ Thailand faces a situation where it’s struggling to advance from a middle-income nation to a high-income one. At the same time, its population is ageing, and the younger generation faces more financial pressures than previous ones.

With fewer young workers and more retirees, Thailand is at a crossroads where it needs to boost its economic productivity and address issues like education, healthcare, and social support systems to continue growing.

So, is Thailand rich or poor? It’s somewhere in between. Thailand has a growing economy and a decent standard of living for many, but deep-rooted issues like wealth inequality and the middle-income trap keep it from being considered truly ‘rich.’ However, if you’re an expat or foreigner looking for an affordable yet high-quality lifestyle, Thailand can be an excellent place to live. Just be aware of the contrasts you’ll see between the wealthy few and the majority.

FAQs about Thailand