The ongoing Red Shirt political rally poses risks for Thailands economic recovery, but panellists at a Nation Group roundtable discussion on Friday were more specifically concerned about threats to the countrys competitiveness and long-term development strategy.

Finance Ministry Spokesman Ekniti Nitithanprapas said that if the red shirts are able to disrupt the functioning of the government during the second or third quarters, the resulting power vacuum would affect the 2011 budget, which needs parliamentary approval before the start of the fiscal year in October. This would affect the disbursement of the Thai Khemkhaeng TKK stimulus funds, as another Bt400 billion worth of investment is awaiting parliamentary approval.Ekniti said the investment is necessary to strengthen Thailands economic competitiveness, given that the political chaos had prevented any government investment in improving infrastructure, compared to a typical expenditure of more than 10 per cent of the annual central budget in years gone by.”On a global scale, Thailands competitiveness is ranked 26th. But the main weak point is lack of improvement in physical and intangible infrastructure [labour productivity, education and R&D]. Without the investment [under TKK, despite the small size of each project], we would see no major investment in this regard at all,” he said at the roundtable.

via Political turmoil undermining the Kingdoms economic strategies.

About the author

Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Insights into the impact of COVID-19 on Thailand’s households

In April 2020, the Thai government passed a 1 trillion baht borrowing decree to address health needs, provide relief, and economic recovery. An estimated 44 million Thais have benefitted from this social assistance and social insurance programs during the pandemic.

Bangkok Cancels New Year Celebration Over Fear of Omicron

The deputy governor said WHO asked countries to cancel some celebrations as Omicron can spread much faster than the Delta variant. Meanwhile, Thailand has also shown a significant rise in Omicron infections during the last few days.

Thailand enters 2022 with gigantic fireworks

Due to concerns about the spread of Covid, visitors were required to show proof of vaccination (at least two doses) and a negative ATK result before entering the outdoor activities.