Deputy PM Supattanapong clarifies eight economic topics

[snoop1130]

Deputy PM Supattanapong clarifies eight economic topics

 

 

BANGKOK (NNT) - Deputy Prime Minister and Energy Minister, Supattanapong Punmeechaow, has posted a message on his Facebook account, providing information about the government’s economic administration and the current economic situation, which is not as bad as the opposition’ claimed in last week’s no-confidence debate.

 

The first issue concerns Thailand’s economic recovery following the COVID-19 outbreak. A speaker in the censure debate commented that the Thai economy was at its worst in decades. However, all other countries have experienced the same challenges. The Thai economy hit its lowest point last April, but the government has continually introduced measures, prompting different economic indicators to rebound.

 

By the time of the second outbreak in Thailand, the government used its experience to address the situation, without having to impose a nationwide lockdown, enabling the economy to grow in the fourth quarter of 2020. As a result, the country’s economy contracted only 6.1 percent last year, while some institutions had predicted a 10 percent contraction. In Southeast Asia, the Philippines saw the deepest decline last year, while the economic situation in Thailand was similar to other countries in the region.

 

Concerning unemployment, the opposition claimed that there are 10 million jobless people. However, the actual unemployment rate is 1.9 percent, which is lower than other Association of Southeast Asian Nations (ASEAN) member states.

 

Moody’s, Fitch Ratings and Standard & Poor (S&P) maintained Thailand’s credit rating, while the credit ratings of many countries were downgraded. In addition, Thailand ranked among top four countries in COVID-19 response, and the country’s financial and monetary system was also among the strongest in emerging markets.

 

In response to a comment that the country’s household debt was at its peak because of the current administration, the household debt level has been high for the last 10 years. When the government of Gen. Prayut Chan-o-cha started administering the country in mid-2014, the household debt was about 80% of gross domestic product (GDP). The government has kept the ratio from increasing while managing the quality of debt. The household debt level was 70 percent in one of the years. Sixty-five percent of the debts arise from home and car loans business operations and consumption. In the third quarter of last year, non-performing loans (NPLs) were only three percent.

 

As for concerns that banks in Thailand may collapse, the equity-to-loan ratio is currently at 20 percent, higher than the 11 percent minimum rate set by the Bank of Thailand (BOT). During the Tom Yum Kung financial crisis in 1997, financial institutions’ equity was only 9.5 percent, which is less than half of the current ratio.

 

In response to the issue of businesses closing down due to debt problems, 63,340 new businesses were registered last year, the number of bad checks decreased by 23 percent, and more entrepreneurs asked for investment privileges than in 2019. The government also supported financial institutions by offering low-interest loans worth 50 billion baht to help many millions of people last year, with financial relief measures covering 42.3 million people. The government took measures to lower people’s utility expenses, increase their social insurance benefits, and improve their liquidity, with low-interest loans worth over 290 billion baht.

 

Furthermore, Thailand is among the top ASEAN countries with the least inequality including poverty, excluding Singapore. The government has continued creating opportunities, ensuring public health welfare and welfare for people in fragile groups.

 

-- © Copyright NNT 2021-02-22

 

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[RichardColeman]

11 minutes ago, snoop1130 said:

Concerning unemployment, the opposition claimed that there are 10 million jobless people. However, the actual unemployment rate is 1.9 percent, which is lower than other Association of Southeast Asian Nations (ASEAN) member states.

Kinda think that I'll side with the opposition on this one ! 1.9% in a pandemic with the loss of 20% GDP and jobs is laughable 

[bkk6060]

23 minutes ago, snoop1130 said:

As a result, the country’s economy contracted only 6.1 percent last year, while some institutions had predicted a 10 percent contraction. In Southeast Asia, the Philippines saw the deepest decline last year, while the economic situation in Thailand was similar to other countries in the region.

 

Concerning unemployment, the opposition claimed that there are 10 million jobless people. However, the actual unemployment rate is 1.9 percent, which is lower than other Association of Southeast Asian Nations (ASEAN) member states.

Sorry, I find this unbelievable.

My guess from observation is Pattaya is contracted 70%+.

Chiang Mai 60%+.

Bangkok 30 to 40%.

 

Many entire roads and Sois totally closed not sure how they determine their % decline

[hotchilli]

I find anything they say hard to believe.... every Thai I speak too are having issues with work or money

only the top tier are doing fine.

[smiggley]

More figures just plucked out or the air, in our village alone we have a drastic influx of younger people because there is no work elsewhere.

[Partenavia]

They can say whatever they like, on the ground in Chiang Rai, 90% of Hotels are either shut or barely have customers. There is very little money being spent on anything other than food.