Economy of Bangkok

Bangkok is the economic center of Thailand, dominating the country's economy and dwarfing other urban centers. In 2005, it produced a GDP (PPP) of about USD 220 billion, which accounts for 43 percent of the country's GDP. Its GDP (PPP) per capita is roughly USD 20,000, one of the highest in Southeast Asia. The Stock Exchange of Thailand is located in Bangkok with over 400 listed companies and combined market capitalization of about THB 5 trillion (USD 120 billion) as of January 5, 2006. Due to the large amount of foreign representation, Thailand has for several years been a mainstay of the Southeast Asian economy and a key center in Asian business. In the recent mini-crash known as Black Tuesday, the SET lost over THB 800 billion or USD 25 billion in value, causing markets in the Asia-Pacific to fall and causing a global impact on December 17, 2006. The loss of market valuation evoked fears of a repeat of the Asian Financial Crisis of 1997; however, a partial policy reversal saw market gaining back nearly all of the value lost.
Bangkok is home to the headquarters of all Thailand's large commercial banks and financial institutions; 18 financial institutions hold at least USD 1 billion in total assets. Their bank deposits totaled approximately THB 7 trillion (USD 177 billion) at the end of the third quarter in 2005. Many transnational companies operate regional headquarters in Bangkok because the cost of operation in the city is less than in most rival cities in Asia. Thirteen Bangkok-based companies are on the Forbes 2000 list, including the largest Thai bank, Bangkok Bank, and the country's largest energy company PTT.
Tourism is a significant contributor to Thailand's economy, providing about 5 percent of GDP. Bangkok is Thailand's principal international gateway, the major domestic hub, and a destination in its own right.
Income inequality of Bangkok's residents is significant, especially between relatively unskilled lower-income immigrants from rural provinces in Thailand and neighboring countries and wealthier government officials, middle class professionals, business elite, and retired foreigners. About 7 percent of Bangkok's population (excluding illegal immigrants who constitute about 5-8 percent of population) lives below the poverty line compared to the national average of 9 percent.