Kiattipong Ariyaprachya (centre), a senior economist at the World Bank who has monitored Thailand in recent years, warns about the country’s chronic level of household debt. Even though the World Bank this week predicted a 3.9% growth rate for 2022, it is based on the current reopening to foreign tourism proceeding apace with an alternative scenario of a 0.3% contraction in the economy if the Omicron variant of the virus severely disrupts economic progress in the months ahead.

 

by James Morris and Son Nguyen

 

The World Bank warns that chronic levels of household debt and a failure to contain a flare-up from Omicron could see Thailand’s economy go backwards in 2022 by 0.3% with only a 1% growth rate this year. On the other hand, it suggests that the kingdom’s external financial position may help cushion it from the impact of rising inflation and higher rate pressures emerging from the United States economy. 

 

Calls were made to the government this week to prepare for the possibility of an elevated inflation rate for the kingdom in 2022 as well as the prospect of higher interest rates being forced on the Bank of Thailand as the US Federal Reserve is thought to be ready to take action to tamp down historically high levels of inflation recorded stateside in November. Last week, the World Bank in its economic assessment for Thailand going into 2022, suggested the kingdom was better placed to ward off the worst of anticipated inflationary pressures. However, the Trade Policy and Strategy Office has confirmed that it does see the rate rising to possibly 3% in the course of the next 12 months.

 

The economic working group of Thailand’s main opposition Pheu Thai Party has warned of the potential knock-on effects on the kingdom’s struggling economy of rising inflation in the United States which is expected to force the US Federal Reserve into tightening credit in the world’s largest economy with an accelerated tapering off of bond purchases and a series of interest rate hikes.

 

Full story: https://www.thaiexaminer.com/thai-news-foreigners/2021/12/19/inflationary-fears-for-thailand-more-muted/

 

-- © Copyright Thai Examiner 2021-12-20

 

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1 hour ago, webfact said:

On the other hand, it suggests that the kingdom’s external financial position may help cushion it from the impact of rising inflation and higher rate pressures

certainly the external financial position wont be used to help the poor at home

Just ask the TAT what to do. They surely have a solution!

 

Who you gonna call?  TAT

Possibly 3% ? Sure Hoss, I'll believe any thing you say. This sauce just went from 84 to about 104 baht.

I wonder what the Thai equivalent is for "up excrement creek without a paddle"?

 

Note: Rhetorical question.

3 minutes ago, morrobay said:

Possibly 3% ? Sure Hoss, I'll believe any thing you say. This sauce just went from 84 to about 104 baht.

Special price for Falang ?

1 hour ago, Orinoco said:

Special price for Falang ?

Luxury tax.... I just love Thailand.

My financial future in the hands of the Thai government and a photo of a kid who looks like he could be my grandchild? I wasted I think......trying to buy as much land as possible.

2 hours ago, Orinoco said:

Special price for Falang ?

no should be double..thats the norm

4 hours ago, morrobay said:

Possibly 3% ? Sure Hoss, I'll believe any thing you say. This sauce just went from 84 to about 104 baht.

And many fresh Veggies are now more than double the price they were just 5 weeks ago.

EG  Spring Onions @ 400 Baht / Kg

Thats more than some prime Steak that is Imported from Oz.

Obscene profiteering

 

Anyone who thinks inflation is not yet upon us needs to have a walk around any Supermarket.    I'm no Financial Whiz Kid but i'm not daft either and prices of the majority of food items have risen 20% to 30% this year.   Nothing here ever seems to go up by the odd Baht or two but five or ten Baht at a time always with an excuse like 'Floods' or 'No Rain' or Swine Flu or Chicken Flu or the Delivery Company is causing delays or whatever jumped up excuse they can think of.

 

Basically it's the old tale of the Rich ripping off the Poor at every turn !