IMF urges Thailand to adopt fiscal reforms, monetary easing to support growth

[webfact]

IMF urges Thailand to adopt fiscal reforms, monetary easing to support growth

 

FILE PHOTO: The International Monetary Fund (IMF) logo is seen outside the headquarters building in Washington, U.S., September 4, 2018. REUTERS/Yuri Gripas/File Photo

 

BANGKOK (Reuters) - Thailand should adopt an expansionary policy mix, including fiscal reforms and monetary easing to help support growth, which has slowed amid rising global trade tensions, the International Monetary Fund said on Monday.

 

The Thai economy grew by 4.1% in 2018, but growth in 2019–20 is expected to slow as uncertainty over trade tensions weigh on global demand, the IMF said in a statement after a staff visit to Southeast Asia's second-largest economy.

 

Risks to the outlook are tilted to the downside, most notably the escalation of protectionism threatening the global trade system, the IMF said.

 

"To support domestic demand, the team recommends an expansionary policy mix consisting of judicious use of fiscal space, fiscal reforms, and monetary easing consistent with a data-dependent approach," it said.

 

The mission recommends a frontloaded increase in public investment in the fiscal year 2020, supported by stronger public investment management, which can catalyze private investment and raise productivity growth, the IMF said.

 

"Given the delay in the enactment of the FY 2020 budget with the transition to the new government and the resulting lack of fiscal stimulus in the remaining months of 2019, as well as the moderation of the financial cycle, monetary easing would help support domestic demand and external rebalancing," it said.

 

Thailand's new cabinet pledged loyalty to the king last week.

 

Thailand's central bank has left its policy interest rate <THCBIR=ECI> unchanged at 1.75% since tightening in December. It will next review policy on Aug. 7.

 

"Foreign exchange intervention should be limited to avoiding disorderly market conditions," the IMF said.

 

The agency said structural reforms would help address macroeconomic imbalances, promote inclusive growth and enhance the key drivers of long-term growth.

 

The IMF's Executive Board is tentatively scheduled to discuss the staff report in September, the IMF said.

 

For the full IMF report https://www.imf.org/en/News/Articles/2019/07/22/pr19294-thailand-imf-staff-concludes-visit?cid=em-COM-123-39208

 

(Reporting by Orathai Sriring; Editing by Susan Fenton)

 

-- © Copyright Reuters 2019-07-23

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[RotBenz8888]

IMF people are a bunch of falang, expect the opposite.

[mania]

1 hour ago, webfact said:

most notably the escalation of protectionism

Boom there it is ????

 

As Dirty Harry said....'Do you feel lucky, punk?' ????

 

If so go ahead & continue down the recent increased xenophobic path your on. See where it leads your economy.

 

[Sticky Wicket]

7 minutes ago, mania said:

Boom there it is ????

 

As Dirty Harry said....'Do you feel lucky, punk?' ????

 

If so go ahead & continue down the recent increased xenophobic path your on. See where it leads your economy.

 

Protectionism, monopolies, duopolies. I'm amazed they get away with it to be fair.

The goods that they export should get absolutely hammered in taxes by other countries

[Sticky Wicket]

52 minutes ago, RotBenz8888 said:

IMF people are a bunch of falang, expect the opposite.

What an insightful post

[RichardColeman]

1 hour ago, webfact said:

The agency said structural reforms would help address macroeconomic imbalances

Sorry, thought maybe that was stolen from a yoguht commercial

[davehowden]

IMF is not my father !

[WeekendRaider]

to think, I recently posted a question on the Chiangmai Forum on Thaivisa.com on whether I should have a borewell drilled at my house in a rural village just outside Chiangmai.  to have dependable water.  in Maewang province.  where we have daily blackouts,  when the voltage is not 170 to 190 volts and sometimes as high as 202 volts..... yes, in Thailand.... Maewang is in Chiangmai province.... and no water supply for most of the day every day the last 5 days.  And this is not an El Nino.  on top of that I was bit, with fangs, on my left foot by a sick bat which is still not normal 9 weeks later as the "klong" behind our house is an open sewer because the recently cement lined canal is higher than the drain pipe under my neighbor's side road that exits to the paddy fields.  And in recent months I have killed at least 7 sick bats that flounder on the floor of the house.   

but the government is ready to approve building a 2nd international airport for Chiangmai?

 

the village regularly does not have fresh water... yes we store it up in garbage buckets and I have a large tank but..... you have to save it up when it is available and... 2019 is not an El Nino.  I don't know what the exact issues are but I do know the water tower has no electric power backup at all and the power my UPS measures, which I have been using almost for 2 decades, shows brownouts several hours everyday below 202 volts it says.  several of my UPS show the voltage.  I never saw this until a few years ago, now it is a daily thing.  it is taking months to even get a few local folks to even think about this.  worse, quite, is that these are folks who don't barely even know what the ENSO is.  they believe 2015-2016 was "natural".  but Freund et. al in Nat Geoscience last month, as only one example indicates that "natural" or not we all better be ready for it to be more pervasive and serious.                  

if anyone wants to test any new law I heard about, that it is illegal to lie on the web, I am quite ready with lots of evidence that all of what I posted here is 100% undeniable by anyone.  why would I, as a "foreigner" that has only lived here almost 2 decades risk such a naked post with political implications????  well, no reliable water and a foot bitten by a sick bat helps that along quite a bit. 

[geoffbezoz]

Prayuth and his incompetent goons are not going to like  getting advice from the IMF. What will the world think about Thailand's economic future now ( and for that matter the Junta's supporters on this forum) ?  After all  these Thais are experts are economics, what does the IMF know about anything ? ????

And despite all the denials by the self proclaimed learned experts on this forum  denying that the Government have been manipulating the exchange rate to suit their own ends, this partial extract from the piece above " "Foreign exchange intervention should be limited to avoiding disorderly market conditions," the IMF said"  ,  seems to indicate otherwise.

[mok199]

 I feel another 3-4 pronged approach coming, followed by the popular ''HUB''......

[PhilAtUbon]

I just wonder if the (self perpetuating) junta understood a single solitary word of it.

 

[ChrisY1]

1 hour ago, WeekendRaider said:

to think, I recently posted a question on the Chiangmai Forum on Thaivisa.com on whether I should have a borewell drilled at my house in a rural village just outside Chiangmai.  to have dependable water.  in Maewang province.  where we have daily blackouts,  when the voltage is not 170 to 190 volts and sometimes as high as 202 volts..... yes, in Thailand.... Maewang is in Chiangmai province.... and no water supply for most of the day every day the last 5 days.  And this is not an El Nino.  on top of that I was bit, with fangs, on my left foot by a sick bat which is still not normal 9 weeks later as the "klong" behind our house is an open sewer because the recently cement lined canal is higher than the drain pipe under my neighbor's side road that exits to the paddy fields.  And in recent months I have killed at least 7 sick bats that flounder on the floor of the house.   

but the government is ready to approve building a 2nd international airport for Chiangmai?

 

the village regularly does not have fresh water... yes we store it up in garbage buckets and I have a large tank but..... you have to save it up when it is available and... 2019 is not an El Nino.  I don't know what the exact issues are but I do know the water tower has no electric power backup at all and the power my UPS measures, which I have been using almost for 2 decades, shows brownouts several hours everyday below 202 volts it says.  several of my UPS show the voltage.  I never saw this until a few years ago, now it is a daily thing.  it is taking months to even get a few local folks to even think about this.  worse, quite, is that these are folks who don't barely even know what the ENSO is.  they believe 2015-2016 was "natural".  but Freund et. al in Nat Geoscience last month, as only one example indicates that "natural" or not we all better be ready for it to be more pervasive and serious.                  

if anyone wants to test any new law I heard about, that it is illegal to lie on the web, I am quite ready with lots of evidence that all of what I posted here is 100% undeniable by anyone.  why would I, as a "foreigner" that has only lived here almost 2 decades risk such a naked post with political implications????  well, no reliable water and a foot bitten by a sick bat helps that along quite a bit. 

Why live in a shit-hole like that?......retirement in Thailand is meant to be pleasant..that is if you are retired.

[KiChakayan]

 

2 hours ago, WeekendRaider said:

on top of that I was bit, with fangs, on my left foot by a sick bat

Hope you get rabies shots, sick bats are high risk carriers.

[Orton Rd]

1 hour ago, mok199 said:

 I feel another 3-4 pronged approach coming, followed by the popular ''HUB''......

You forgot the road map, can't go anywhere without one!

[dinsdale]

[soalbundy]

32 minutes ago, KiChakayan said:

 

Hope you get rabies shots, sick bats are high risk carriers.

Ebola

[baboon]

59 minutes ago, ChrisY1 said:

Why live in a shit-hole like that?......retirement in Thailand is meant to be pleasant..that is if you are retired.

Well, you move in somewhere, get to know the locals, grow fond of the place... It can become difficult to leave once you have formed attachments.

I doubt it was such a dump when the gentleman first moved in...

[Beggar]

Just read in a German newspaper of an internal IMF strategy paper where they suggest an interest rate of minus 10 percent and also talk about the removal of cash. I think better we remove the IMF... 

 

 

[klauskunkel]

5 hours ago, webfact said:

IMF urges Thailand to adopt fiscal reforms, monetary easing to support growth

Prayut to IMF:

Look here, I have a 5-year-plan, a 10-year-plan and a 20-year-plan, I have a roadmap which will get me out, I have 5 former Rivers turned into creeks to combat the drought, I am a General with a pet frog and I have a friend whose watch collection I can borrow as collateral. What could possibly go wrong?

Also, you would be wise to remember: Thailand invented the IMF.

[rtco]

Yeh I'm sure the government agree with all of that but here's the "top priority" ... 

 

[Eligius]

47 minutes ago, Orton Rd said:

You forgot the road map, can't go anywhere without one!

Right. But you forgot the road map that leads to the road map that leads further on to another road map - a never-ending lie and con!

[Eligius]

21 minutes ago, klauskunkel said:

Prayut to IMF:

Look here, I have a 5-year-plan, a 10-year-plan and a 20-year-plan, I have a roadmap which will get me out, I have 5 former Rivers turned into creeks to combat the drought, I am a General with a pet frog and I have a friend whose watch collection I can borrow as collateral. What could possibly go wrong?

Also, you would be wise to remember: Thailand invented the IMF.

The famed '20-year plan' always strikes me as risible (and that is being nice about it): even Hitler only used to operate with four-year plans.

Says a lot!

[Eric Loh]

3 hours ago, davehowden said:

IMF is not my father !

Father gave USD23 B loan to Thailand post 1997. 

[HaoleBoy]

1 hour ago, Orton Rd said:

You forgot the road map, can't go anywhere without one!

And a new song by the illustrious leader to make it all go away or at least make one feel better ...  ????

[hotchilli]

6 hours ago, webfact said:

"Given the delay in the enactment of the FY 2020 budget with the transition to the new government and the resulting lack of fiscal stimulus in the remaining months of 2019, as well as the moderation of the financial cycle, monetary easing would help support domestic demand and external rebalancing," it said.

 

I'm sure the "poor farmers" will be thankful.

[hansnl]

3 hours ago, geoffbezoz said:

Prayuth and his incompetent goons are not going to like  getting advice from the IMF. What will the world think about Thailand's economic future now ( and for that matter the Junta's supporters on this forum) ?  After all  these Thais are experts are economics, what does the IMF know about anything ? ????

And despite all the denials by the self proclaimed learned experts on this forum  denying that the Government have been manipulating the exchange rate to suit their own ends, this partial extract from the piece above " "Foreign exchange intervention should be limited to avoiding disorderly market conditions," the IMF said"  ,  seems to indicate otherwise.

May I remind you that the rot started around 2000?

Yes, when TS started his tenure?

You think he liked farang advice, him being Chinese?

Maybe many of the "learned" TV members might have gut feelings about economics more realistic as yours, and what's more, a much longer memory.

Blaming the last five years for alle woos and forgetting all that came before is a sure sign of a selective Löss of memory.

[SOUTHERNSTAR]

Here the truth do not count.

to think, I recently posted a question on the Chiangmai Forum on Thaivisa.com on whether I should have a borewell drilled at my house in a rural village just outside Chiangmai.  to have dependable water.  in Maewang province.  where we have daily blackouts,  when the voltage is not 170 to 190 volts and sometimes as high as 202 volts..... yes, in Thailand.... Maewang is in Chiangmai province.... and no water supply for most of the day every day the last 5 days.  And this is not an El Nino.  on top of that I was bit, with fangs, on my left foot by a sick bat which is still not normal 9 weeks later as the "klong" behind our house is an open sewer because the recently cement lined canal is higher than the drain pipe under my neighbor's side road that exits to the paddy fields.  And in recent months I have killed at least 7 sick bats that flounder on the floor of the house.   

but the government is ready to approve building a 2nd international airport for Chiangmai?
 
the village regularly does not have fresh water... yes we store it up in garbage buckets and I have a large tank but..... you have to save it up when it is available and... 2019 is not an El Nino.  I don't know what the exact issues are but I do know the water tower has no electric power backup at all and the power my UPS measures, which I have been using almost for 2 decades, shows brownouts several hours everyday below 202 volts it says.  several of my UPS show the voltage.  I never saw this until a few years ago, now it is a daily thing.  it is taking months to even get a few local folks to even think about this.  worse, quite, is that these are folks who don't barely even know what the ENSO is.  they believe 2015-2016 was "natural".  but Freund et. al in Nat Geoscience last month, as only one example indicates that "natural" or not we all better be ready for it to be more pervasive and serious.                  

if anyone wants to test any new law I heard about, that it is illegal to lie on the web, I am quite ready with lots of evidence that all of what I posted here is 100% undeniable by anyone.  why would I, as a "foreigner" that has only lived here almost 2 decades risk such a naked post with political implications????  well, no reliable water and a foot bitten by a sick bat helps that along quite a bit. 

Sent from my SM-A730F using Thailand Forum - Thaivisa mobile app

[SOUTHERNSTAR]

Less tanks, fighter aircraft, subs. NOOOOO!!!!!!!

Sent from my SM-A730F using Thailand Forum - Thaivisa mobile app

[SOUTHERNSTAR]

Less generals NEVER!!!!!!

Sent from my SM-A730F using Thailand Forum - Thaivisa mobile app

[overherebc]

5 hours ago, RichardColeman said:

Sorry, thought maybe that was stolen from a yoguht commercial

Doesn't that end with a load of s---