Economics
Aging society and skill shortage key issues in Thailand’s economy
According to Moody’s latest Research Announcement, Thailand will sustain fiscal and external strength regardless of political developments; but structural challenges persist.

13 June 2019 Singapore, June 13, 2019 — —Thailand will likely maintain continuity on infrastructure investment, after the country’s recent election results.
But its ageing society, moderate competitiveness and labour skills shortages remain key credit challenges.
Moody’s Investors Service has just released an FAQ on the Government of Thailand (Baa1 stable), analysing the outlook for policy, growth and structural reforms, against the backdrop of global trade tensions.
Moody’s report also examines the impact of Thailand’s elections in March 2019.
Moody’s expects policy continuity on the country’s 20-year national strategy, including investment in the flagship Eastern Economic Corridor. However, opposition to the ruling coalition’s slim majority in the lower house of parliament could delay the implementation of certain policies.
On the issue of how Thailand’s fiscal and external position will evolve, Moody’s says that Thailand will likely sustain its strong fiscal position, regardless of political developments, because of the country’s track record of adhering to fiscal rules, a factor that also supports Moody’s assessment of very high policy effectiveness.
Ongoing inflation within target and financial stability are factors that underscore the country’s monetary policy effectiveness, and persistent balance-of-payments surpluses will continue to bolster foreign exchange reserves and contribute to low external vulnerability risk.
Thailand’s ageing society to weigh significantly on growth potential.
However, absent significantly higher migration, the aging of Thailand’s society will weigh significantly on growth potential.
Moreover, while data indicate that Thailand’s education standards are higher than the average for countries with similar incomes, they remain lower than some rating peers and Asian neighbours.
In the absence of ongoing policy reform, this situation will exacerbate demographic and skills constraints, and weigh on economic competitiveness.
As for the impact of the US-China trade dispute on Thailand’s economy, Moody’s says that while exports to China are declining, Thailand’s exposure to China is more moderate than for other Asia Pacific economies.
Economics
Thai economy to grow 4% in 2021 following 6.5% decline in 2020
The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).
(more…)Banking
BoT sees mild impact of new COVID-19 wave on the economy
The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.
(more…)Economics
COVID-19 brings first consumer confidence drop in 3 months
Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.
-
Economics8 hours ago
Thai economy to grow 4% in 2021 following 6.5% decline in 2020
-
Forex3 days ago
Leverage from Forex Brokers & How Beginners Can Benefit from It
-
Tourism1 week ago
Wish you were here: how the pandemic harmed tourism-dependent economies
-
Economics1 week ago
COVID-19 brings first consumer confidence drop in 3 months