Thai economic stability strong, can handle external volatility - central bank chief

 

FILE PHOTO: Thailand’s Central Bank Governor Veerathai Santiprabhob is seen during an interview with Reuters at the Bank of Thailand headquarters in Bangkok, Thailand March 14, 2018. REUTERS/Jorge Silva

 

BANGKOK (Reuters) - Thailand is economically stable and strong and can withstand increased global volatility, the central bank chief said on Tuesday.

 

The country has low foreign debt, high international reserves of more than $200 billion and a current account surplus at 7 percent of gross domestic product, Bank of Thailand Governor Veerathai Santiprabhob told a seminar.

 

However, the country faces structural challenges, including low labour productivity, a labour mismatch and low investment, he said.

 

High household debt remains a problem, equivalent to about 77.8 percent of GDP, which is higher than those of countries with a similar income to Thailand, Veerathai said.

 

The government's spending on social security and large investment projects and short-term populist policies are putting pressure on the fiscal position, he said.

 

It is estimated that the government will have to adopt a deficit budget for another 12 years, he said.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Nick Macfie)

 

-- © Copyright Reuters 2019-03-06

8 hours ago, webfact said:

It is estimated that the government will have to adopt a deficit budget for another 12 years, he said.

That doesn't bode well for any new regime