Economist urges Thai govt to spend more to shore up slow economy

[webfact]

Economist urges govt to spend more to shore up slow economy

By The Nation

 

Virabongsa, chairman of Bangkok Expressway and Metro Public Company Limited

 

Virabongsa Ramankura, a former finance minister and noted economist, is urging the government to spend more as the economy slows down due to a trade war between the world’s two largest economies – the US and China. 

 

Virabongsa, who was also formerly a deputy prime minister, said the government should not worry about the country being hit by a debt crisis like in 1997, adding that the public debt is only 42 per cent of the gross domestic product (GDP), which is quite low. 

 

He said the government could borrow more money or push the debt up to 70 per cent of the GDP. The economist also said it was a pity that the government has not been using its financial resources effectively to boost growth. 

 

The government could also unlock high liquidity in the financial system to benefit investments, he said, adding that regulations restraining the disbursement of funds to promote public investments should also be relaxed. 

 

He also put the slowdown to public infrastructure projects that are stalled, adding that the government has not been taking advantage of the fact that the country has a high current-account surplus. 

 

“This is a weak point of the military government, which deploys state officials for work. This is in contradiction to an elected government, which is usually under high pressure to deliver outcomes,” he said. 

 

However, he said, he agreed with the government’s project of giving cash to farmers. 

 

He said Thailand could not avoid the impact from the trade war as exports account for 75 per cent of the GDP. Thai exports have contracted due to a slowdown in the global economy and the strengthening baht is also worsening matters for the export sector, he said.

 

Source: https://www.nationthailand.com/business/30376048

 

-- © Copyright The Nation Thailand 2019-09-11

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[Isaan sailor]

The false assumption here: trade war begets an overpriced Baht.  Not in the least—just look at Taiwan or Vietnam’s currencies: all steady and competitive.  Bank of Thailand holds the cards, and they sure like the hot money inflows—more than saving exports or tourism.

[Cadbury]

8 hours ago, webfact said:

Virabongsa Ramankura, a former finance minister and noted economist, is urging the government to spend more as the economy slows down

Spending a billions of baht on air, military, naval weaponry and private jets for Prawit "Watches" Wongsuwan does nothing to improve the economy.

Nor does money spent on a Minister jetsetting around the world on a study tour of late closing of bars and clubs. 

Edited September 11, 2019 by Cadbury

[Jano22]

Am i wrong, or is this «medecine» the oposite of what most other countrys recomend ?

[roobaa01]

how about baht devaluation against a currency basket.

 

wbr

roobaa01

 

[Eric Loh]

8 hours ago, webfact said:

He said the government could borrow more money or push the debt up to 70 per cent of the GDP

Stop giving this government any more ideas for military procurement. 

[jerojero]

Yes! Borrow more money, run up deficit. Then they cannot afford more toys for the military. Only way to stop the stupidity of buying the unneeded for military.

[RichardColeman]

8 hours ago, webfact said:

“This is a weak point of the military government, which deploys state officials for work. This is in contradiction to an elected government, which is usually under high pressure to deliver outcomes,” he said.

Today's poll : 

Sacked ?

Re-educated ? 

Disappeared ? 

[peter14]

Gov going to tax more ti fund money????Thainhave no money monkey PM. Bank is not lending either. You went to school or what?

Edited September 11, 2019 by peter14
Context error

[Isaan sailor]

1 hour ago, roobaa01 said:

how about baht devaluation against a currency basket.

 

wbr

roobaa01

 

Too obvious, and Chinese masters would disapprove.