From 1985 to 1996, Thailand's economy grew at an average of over 9% per year, the highest economic growth rate of any country at the time. Inflation was kept reasonably low within a range of 3.4–5.7%. The baht was pegged at 25 to the U.S. dollar.
Boeing 767-3Z9ER, On May 26, 1991, Lauda Air Flight 004, broke up in midair over a remote area of Thailand due to an uncommanded deployment of a thrust reverser on one of the plane's engines, killing all 213 passengers and 10 crewmembers aboard. The flight, which originated at Kai Tak Airport, Hong Kong, and made a stopover at Don Mueang International Airport in Bangkok, Thailand, was en route to Vienna International Airport, Vienna, Austria when the accident occurred.
Thailand lacked the foreign reserves to support the USD–Baht currency peg, and the Thai government was eventually forced to float the Baht, on 2 July 1997, allowing the value of the Baht to be set by the currency market. This caused a chain reaction of events, eventually culminating into a region-wide crisis.
On 11 August 1997, the IMF unveiled a rescue package for Thailand with more than $17 billion, subject to conditions such as passing laws relating to bankruptcy (reorganizing and restructuring) procedures and establishing strong regulation frameworks for banks and other financial institutions.
The baht devalued swiftly and lost more than half of its value. The baht reached its lowest point of 56 units to the U.S. dollar in January 1998. The Thai stock market dropped 75%. Finance One, the largest Thai finance company until then, collapsed.