Thailand attempts to revive weakening economy
Thailand’s government plans to allocate an additional $5.3 billion this fiscal year to investment projects in provincial areas, in what appears to be a major effort to appeal to the rural population and kickstart economic growth after several years of stagnation. High household debt, dropping foreign investment since the 2014 military takeover, low consumer confidence and shaky exports have slowed growth in what for many years was the region’s leading economy. Thailand’s budget deficit will increase to $16.3 billion from $11 billion for the fiscal year beginning October 2016. And Thailand’s National Economic and Social Development Board announced that the economy grew 3.2% on-year in July-September. This missed estimates and was down from the previous quarter’s growth of 3.5%. Joshua Kurlantzick, a senior fellow for Southeast Asia at the Council on Foreign Relations, said that underlying weaknesses in the Thai economy have kept the country from getting back on its feet. “Look at Thailand’s economic performance going back over five years, and compare it to other regional economies,” he said. “It’s weak, and the structural factors are there: inability to transition to higher-value exports, not great education system, political instability, losing important manufacturing jobs to Vietnam and other places, etcetera.”
