Like many other economies of the region, Thailand’s growth has been relatively capital
intensive: the growth of the capital stock has consistently exceeded that of output, but by a
relatively modest margin, and the capital-output ratio is still low relative to the industrial
economies. Finally, figure 1 highlights the extent to which the 1997-98 output collapse was
concentrated in capital investment, and the lack of any significant recovery in the following
years. The investment rate averaged 40 percent of GDP in the first half of the 1990s; it has been
half that since the crisis.