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Strong fundamentals keeping Thai economy stable, IMF report shows

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Strong fundamentals keeping Thai economy stable, IMF report shows

By The Nation

 

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Photo by: Finance Ministry

 

Domestic consumption and investment on infrastructure is allowing the Thai economy to grow continuously, the International Monetary Fund (IMF)’s mission chief for Thailand, Lamin YM Leigh said on Friday after meeting with Finance Minister Uttama Savanayana.

 

Leigh met Uttama to present a report on IMF’s estimation of the Thai economy for 2019 under the IMF Article IV Consultation. The report showed that though Thailand has been hit negatively by the US-China trade war, its economy has continued to grow due to domestic consumption and strong macroeconomic fundamentals. 

 

The report also showed that Thailand’s international financial position remained stable, and that it will be able to cope with the volatility of the global economy thanks to its high international reserves. 

 

IMF believes that private consumption and investment in Thailand are also likely to expand, though it has advised the government to be aware of the potential risk of international trade conflicts that might result in an economic slowdown for major trading partners. 

 

However, the IMF report lauded Thailand’s recent fiscal policy, especially the 2018 State Finance Fiscal Discipline Act, which was passed to set up a financial discipline framework for the country and develop laws to make the government transparent and prevent corruption. 

 

Leigh said the fiscal policy still needs to be expanded and that the government should accelerate its investments, especially in the Eastern Economic Corridor (EEC), and speed up the implementation of social welfare policies, such as the state-welfare card that aims to benefit more than 14.6 million low-income earners. 

 

The IMF has also advised the government to develop the country’s workforce, so it is more productive and can boost Thailand’s competitiveness in line with the 20-year national strategy. It also said that in order to enter the digital economy era in accordance with the Thailand 4.0 model, the government needs to invest in education and public health as well as provide equal opportunities to people. 

 

Meanwhile, Uttama told the IMF team that the government has continued promoting the EEC and has also been investing to develop the country’s infrastructure, such as the rail system, roads, ports and airports. The government will also improve the law on public-private partnerships so the private sector can also invest to develop infrastructure projects. He said the government is also planning to revise the country’s tax system in order to promote investment and to support small and medium enterprises in particular.

 

Source: https://www.nationthailand.com/business/30373312

 

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-- © Copyright The Nation Thailand  2019-07-21
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10 minutes ago, rooster59 said:

its economy has continued to grow due to domestic consumption and strong macroeconomic fundamentals. 

 

The report also showed that Thailand’s international financial position remained stable

This is a result of the governments commitment to continue to invest and develop infrastructure throughout Thailand.

Khun Prayut Chan O Cha has pushed many dozens of projects forward to tackle economic stability and jobs growth. Khun Prayut has worked hard to ensure the country continues to move ahead, and this article is clear cut evidence of that.

Thailand keeps ticking over, although there are the skeptical farang who desperately engage in fallacy talk about tourism going down the drain and economy down and everything is bad yet comments like these from the IMF only solidify how wrong the farang are with their garbage talk and never any evidence to back their nonsense up.

Well done Khun Prayut Chan O Cha, Thailand is happy to have economic stability while other western countries are either currently in a technical recession or are so messed up with their governments lack of performance that they might as well be.

Image result for pics of khun Prayut chan o cha

 

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Can domestic consumption save the Thai economy?  I rather doubt it.  Forget exporting.  Nobody wants overpriced shoddy goods.

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Posted (edited)

actually Thailand is doing great, they just don't want white people now.  We are out of fashion. 

 

as for the rest of the world:

 

 

Edited by NCC1701A
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6 hours ago, rooster59 said:

Domestic consumption and investment on infrastructure is allowing the Thai economy to grow continuously,

Great, build a new road to the bank to borrow more money on the never-never !

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1 hour ago, Brickbat said:

Most consumption is on borrowed money. Money is cheap now. Most people worldwide , and most Thais,  have no clue about simple home economics or consequences. 

Day of reckoning will arrive, worldwide,  as it’s inevitable rates will rise and the world will see another gfc. This bull run has been the longest and the fall will be harder. 

I think it’s late this year or 2020 when cash will be king as panic sets into a Sell frenzy. 

 

And...it’s just another opinion! Nice to have one!

The gfc (global financial crisis) is coming. It will probably be worse than 2007 since there has been all the borrowing worldwide, plus the difficulties of major countries unable to coordinate policies, plus the further difficulty of making economic policy to respond effectively to a severe economic dislocation, US and EU especially. Manipulating interest rates has practically run its course. Even quantitative easing has effective limits.

 

This will be a debt trap for consumers. For countries, it's hard to imagine the US Dollar getting much higher, so that's one consolation. On the other hand, deflation will be bad news for resource-driven economies. Rate rises are less an issue for major countries. That problem will come in countries, as in Turkey now, where excessive borrowing and inflation leads to a vicious circle where interest rates are a mechanism to stabilize the exchange rate of the local currency.  

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Given the current lack of rain in many areas I predict a drop in internal consumption regarding farm implements and motor vehicles, clothing, smart phones, white goods, a rise in borrowing if there is any further support accessible, could turn out be a tough couple of years ahead for the rural communities without some form of government intervention.

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1 hour ago, 473geo said:

Given the current lack of rain in many areas I predict a drop in internal consumption regarding farm implements and motor vehicles, clothing, smart phones, white goods, a rise in borrowing if there is any further support accessible, could turn out be a tough couple of years ahead for the rural communities without some form of government intervention.

Just to add over the next couple of years there will be a spike in the sales of small pumps, and blue plastic pipes, also a slight rise in sales of fencing materials, probably mostly imported from China

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3 hours ago, Brickbat said:

Most consumption is on borrowed money. Money is cheap now. Most people worldwide , and most Thais,  have no clue about simple home economics or consequences. 

Day of reckoning will arrive, worldwide,  as it’s inevitable rates will rise and the world will see another gfc. This bull run has been the longest and the fall will be harder. 

I think it’s late this year or 2020 when cash will be king as panic sets into a Sell frenzy. 

 

And...it’s just another opinion! Nice to have one!

The bull run is funded by QE money at the expense of the saver. The Fed bailed out the banks last time. Who will bail out the Fed in the next crash. All the Fed did in 2008 was kick the can down the road. 

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11 hours ago, rooster59 said:

Strong fundamentals keeping Thai economy stable

Haha

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12 hours ago, steven100 said:

This is a result of the governments commitment to continue to invest and develop infrastructure throughout Thailand.

Khun Prayut Chan O Cha has pushed many dozens of projects forward to tackle economic stability and jobs growth. Khun Prayut has worked hard to ensure the country continues to move ahead, and this article is clear cut evidence of that.

Thailand keeps ticking over, although there are the skeptical farang who desperately engage in fallacy talk about tourism going down the drain and economy down and everything is bad yet comments like these from the IMF only solidify how wrong the farang are with their garbage talk and never any evidence to back their nonsense up.

Well done Khun Prayut Chan O Cha, Thailand is happy to have economic stability while other western countries are either currently in a technical recession or are so messed up with their governments lack of performance that they might as well be.

Image result for pics of khun Prayut chan o cha

 

Forgot taking your meds ?

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