The economy of Isan , Thailand 's largest region, composed of 20 provinces in the northeast, is dominated by agriculture, although agricultural output is low and decreasing in importance while the trade and service sectors are growing. Much of the population is poor and badly educated.
Isan accounts for around a third of Thailand's population and a third of its area. In it contributed The first decade of the 21st century saw improvements in Isan's economy.
Economic growth in the region reached 40 percent from to , versus 23 percent for the country as a whole, and just 17 percent for greater Bangkok. Monthly household income rose 40 percent between and , the biggest jump of any Thai region. Former prime minister Thaksin Shinawatra came to power in and initiated a series of populist policiesβ-from virtually free healthcare to low-interest loans to the rural poorβthat stimulated Isan's economy. Thaksin was ousted in a coup, but his sister, Yingluck was elected prime minister in The economic renaissance of Isan coincided with the expansionary policies, from wage increases to farm subsidies, that were begun by Thaksin and continued by his sister.
Yingluck's government brought in a nationwide minimum wage of baht a day in January In some Isan provinces, that was an increase of 35 percent, among the biggest gains in the country, on top of a nationwide 40 percent increase in April Only 10 percent of the funds are allocated to projects in Isan despite its accounting for 33 percent of the population. The majority will be spent on a new Khorat-Bangkok motorway. Agriculture is the biggest sector of the economy. The following table shows the percentage of gross regional product GRP by sector in [1] : Agriculture remains the largest sector of the economy, but its importance is decreasing.
Its share of GRP fell from 45 percent in to During the s, the agricultural sector grew at 3. Although 76 percent of the population engages in some form of agriculture, only 46 percent of the workforce is formally employed in the sector, reflecting the fact that for many it is a part-time occupation.
