Finance Minister Korn Chatikavanij on Wednesday indicated the government need not inject more money into the economic system for 2010 because the expenditure budget and investment amount under the Thai Khem Keng (strong Thailand) scheme are already enough to drive the country’s economy. He said the 2010 budget amounting to Bt1.7 trillion, when combined with an investment amount of Bt300 billion under the Thai Khem Keng scheme, would reach Bt2 trillion, sufficient to drive the economy.
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Finance minister: Unnecessary to inject more money into system
Infrastructure services, if quickly improved, could promote a better investment climate in Thailand
Recent crashes in Thailand’s GDP and export markets, plus the drop in tourism fuelled by recession and last year’s domestic political turmoil, have dispelled illusions that the country is insulated from the effects of the global downturn. Numerous indicators of economic health are hitting the red, foreign investment is evaporating, unemployment is surging, and credit lines are freezing up. Thailand’s government still says there is a possibility of positive growth this year, despite facing a rougher ride than in the 1997 Asian financial crisis as conditions infest the real economy on a broader scale.
Thailand’s economic growth over the last three decades has been fueled and accompanied by rapid industrialization, urbanization, and by intensified agricultural production and fishing. This growth, which has relied extensively on the country’s abundant and diverse natural resources, has degraded land and water quality, caused the loss of natural habitats, and generated increasing levels of air and water pollution. In response, the Government and people of Thailand have launched new initiatives to improve air and water quality, reforest degraded land, adopt energy efficient technologies and invest in pollution abatement schemes.