Thailand experienced the world's highest economic growth rate from 1985 to 1996 – averaging 12.4% annually. In 1997 increased pressure on the baht, a year in which the economy contracted by 1.9%, led to a crisis that uncovered financial sector weaknesses and forced the Chavalit Yongchaiyudh administration to float the currency. Prime Minister Chavalit Yongchaiyudh was forced to resign after his cabinet came under fire for its slow response to the economic crisis. The baht was pegged at 25 to the US dollar from 1978 to 1997. The baht reached its lowest point of 56 to the US dollar in January 1998 and the economy contracted by 10.8% that year, triggering the Asian financial crisis.

Thailand's economy started to recover in 1999, expanding 4.2–4.4% in 2000, thanks largely to strong exports. Growth (2.2%) was dampened by the softening of the global economy in 2001, but picked up in the subsequent years owing to strong growth in Asia, a relatively weak baht encouraging exports, and increased domestic spending as a result of several mega projects and incentives of Prime Minister Thaksin Shinawatra, known as Thaksinomics. Growth in 2002, 2003, and 2004 was 5–7% annually.

Growth in 2005, 2006, and 2007 hovered around 4–5%. Due both to the weakening of the US dollar and an increasingly strong Thai currency, by March 2008 the dollar was hovering around the 33 baht mark. While Thaksinomics has received criticism, official economic data reveals that between 2001 and 2011, Isan's GDP per capita more than doubled to US$1,475, while, over the same period, GDP in the Bangkok area increased from US$7,900 to nearly US$13,000.

With the instability surrounding major 2010 protests, the GDP growth of Thailand settled at around 4–5%, from highs of 5–7% under the previous civilian administration. Political uncertainty was identified as the primary cause of a decline in investor and consumer confidence. The IMF predicted that the Thai economy would rebound strongly from the low 0.1% GDP growth in 2011, to 5.5% in 2012 and then 7.5% in 2013, due to the monetary policy of the Bank of Thailand, as well as a package of fiscal stimulus measures introduced by the former Yingluck Shinawatra government.

Following the Thai military coup of 22 May 2014, the AFP global news agency published an article that claimed that the nation was on the verge of recession. The article focused on the departure of nearly 180,000 Cambodians from Thailand due to fears of an immigration clampdown, but concluded with information on the Thai economy's contraction of 2.1% quarter-on-quarter, from January to the end of March 2014.