iShares MSCI Thailand (NYSEArca: THD) was one of 2010’s best-performing exchange traded funds (ETFs), gaining an impressive 53.3%. Some pressures, however, loom.

Domestic politics, strong local currency and rising interest rates will be key factors affecting the Thai economy this year. [Thailand ETF Recovers From Unrest.]

The Thai baht will continue to rise as more foreign capital flows in to the domestic financial market, but the stronger currency is a double-edged sword because it could slow what has been a strong export business.

Already, the forecasts call for export growth of 11.7% this year, down from 25.1% last year, says Live Trading News. [ETFs for Getting Your Asia Fix.]

On the plus side, though, Suttinee Yuvejwattana for Bloomberg says that while export growth may indeed slow, domestic consumption and foreign investment will be stronger drivers as tighter monetary policy will slow manufacturing into the new year.

If that’s correct, THD could be gearing up for another blockbuster year.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.