Thailand could lose its regional economic competitiveness due to domestic political instability and the lack of policies to improve its long-term economic fundamental, leading economists say.

Ekniti Nitithanprapas, director of the Finance Ministry’s macroeconomic policy planning section, said the country has been slow to invest in large projects that would enhance long-term competitiveness.

Public investment has been subdued since the 1997 economic crisis, he said.

image 9
Political analysts expect political stability to deteriorate further after anti-government protestors announced plans to stage a million-strong rally in Bangkok on March 14 to pressure the Abhisit Vejjajiva government to dissolve parliament.

“Investors now have many more choices,” Dr Ekniti told the Bangkok Post. “What draws investors to Thailand is old infrastructure that was built 30 years ago – the Eastern Seaboard. Now it is beginning to reach capacity and environmental problems have grown.”

via Thailand risks losing its competitive edge, economists warn.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

You May Also Like

ADB predicts 4.6% growth in Southeast Asia but warns of increasing risks

The growth forecast for Thailand has been revised upward from 3.3% to 3.5% for the year 2023, and it is expected to remain at 3.7% for the year 2024.

Thailand’s GDP to grow 3.9% in 2023 says World Bank

The EAP region’s GDP is predicted to accelerate to 5.5% in 2023, with a comeback in China balancing sluggish growth in a number of other economies. Growth in the EAP is predicted to drop to 4.6% and 4.5% in 2024 and 2025, respectively, as China’s economy slows and the rest of the region experiences largely stable growth.