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Is Thailand Heading For a remake of 1997 Crash ?

Thailand is part of the overall emerging markets bubble that some have been warning about in recent years, along with Indonesia, Malaysia and other Southeast Asian countries.

Boris Sullivan

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Thailand is part of the overall emerging markets bubble that some have been warning about in recent years, along with Indonesia, Malaysia and other Southeast Asian countries.

The emerging markets bubble started in 2009, when China launched a bold stimulus-driven economic growth strategy to counter the deleterious effects of the global financial crisis on its economy. China immediately scrambled to construct scores of new cities (many of which are still empty) and ambitious infrastructure projects for the sake of generating economic growth, which sparked a global raw materials boom that benefited commodities exporters such as emerging market nations and Australia.

Works in downtown Bangkok Sukhumvit district

Thailand is part of the overall emerging markets bubble that some have been warning about in recent years, along with Indonesia, Malaysia and other Southeast Asian countries.

 

Global investors soon began to pile into emerging market investments to diversify away from ailing Western nations in wake of the financial crisis.

Zero interest rates and hot money

Near-zero interest rates in the U.S., Europe and Japan, along with the U.S. Federal Reserve’s multi-trillion dollar quantitative easing stimulus programs encouraged $4 trillion worth of speculative capital to flow into emerging market investments since 2009.

Global investors entered carry trades in which they borrowed very cheaply from the U.S. and Japan, and invested the funds in high-yielding emerging market assets, while profiting from the interest rate differential or “spread.”

The sudden influx of “hot money” into emerging market investments helped to inflate a bond bubble, which pushed EM borrowing costs to all-time lows and enabled government-driven infrastructure booms, red-hot credit growth, and property bubbles across the entire emerging world.

via Thailand’s Bubble Economy Is Heading For A 1997-Style Crash – Forbes.

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Thai Exports down 2.91% in the first half of 2019

Thai exports were down 2.15% in June, causing the sector to contract 2.91% in the first half of the year.

National News Bureau of Thailand

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Exports down 2.91%

BANGKOK, 22nd July 2019 (NNT) – The ongoing trade war between China and the United States continues to affect Thailand’s export sector. Last month, exports were down 2.15%, causing the sector to contract 2.91% in the first half of the year.

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Real estate developers’ confidence falls in Q2 2019

Real estate developers are also waiting for the government’s policy on real estate and housing development to be clarified.

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The confidence index of real estate developers for the second quarter of this year has dropped to 42.2 points from 50.4 points for the first quarter.

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MRT to start passenger Test Runs late July on Blue Line extension

The Mass Rapid Transit Authority (MRTA) commenced internal test runs on the MRT Blue Line’s Hua Lamphong – Bangkae extension on 1st July this year.

National News Bureau of Thailand

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BANGKOK, 07 July 2019 (NNT) – The Mass Rapid Transit Authority is set to open the MRT Blue Line Thaphra extension for passenger test runs in late July.

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