World Bank Upgrades Thailand’s Income Categories To Upper-Middle Income Economy

[webfact]

World Bank upgrades Thailand’s income categories to upper-middle income economy

BANGKOK: --The World Bank upgraded Thailand’s income categorization from a lower-middle income economy to an upper-middle income economy this year, according to World Bank senior economist Kirida Bhaopichitr.

The World Bank annually revises its classification of world economies based on gross national income (GNI) per capita estimates using the Atlas method. As of July 1, upper-middle-income economies are those with average incomes of US$3,976 to $12,275. Using the Atlas method,Thailand’s GNI per capita is currently at $4,210.

“The upgrade is in recognition of Thailand's economic achievements in the past decade in which GNI per capita has almost doubled, while poverty has been significantly reduced," she said.

The country has been prudent in macroeconomic management with a strong fiscal stance and low public debts and inflation. Thailand has a friendly business environment and has been successful in attracting foreign direct investment and achieving greater diversification in manufacturing production, both in terms of higher value-added production and expansion into new emerging export markets.

“These achievements were reflected in the resiliency of the Thai economy to the recent global financial crisis, which now place Thailand in a position of opportunity to pursue stronger ties to both ASEAN and the world,” said Mr Kirida.

“For Thailand to sustain its growth and avoid the middle income trap,it needs to pay attention to raising the productivity of not only the manufacturing, but also the agriculture and services sectors. Higher levels of education and skills as well as creativity, innovation, and competition will be necessary. These would not only promote higher growth but also inclusive growth which will help reduce the persistent high income inequality in Thailand,” he said.

The World Bank uses GNI per capita estimates for its operational classification of economies which, in turn, determines their lending eligibility. (MCOT online news)

-- TNA 2011-08-17

[tpthai2]

Wonder how this will affect GSP with the EU and the US?

*GSP exempts WTO member countries from MFN for the purpose of lowering tariffs for the least developed countries (without also doing so for rich countries). The idea of tariff preferences for developing countries was the subject of considerable discussion within UNCTAD in the 1960s. Among other concerns, developing countries claimed that MFN was creating a disincentive for richer countries to reduce and eliminate tariffs and other trade restrictions with enough speed to benefit developing countries.

[Gonsalviz]

I know a lot of Thai families up north that would disagree. While none of them live in squalor or have a lack of food, they certainly don't make that kind of money.

They don't buy their food, they find the majority of it in the jungle and grow the rest. Very seldom eat meat that they buy.

I don't see that as anywhere near upper middle income.

[Beetlejuice]

I know a lot of Thai families up north that would disagree. While none of them live in squalor or have a lack of food, they certainly don't make that kind of money.

They don't buy their food, they find the majority of it in the jungle and grow the rest. Very seldom eat meat that they buy.

I don't see that as anywhere near upper middle income.

Very true, this is total rubbish.

Try telling the good news to the locals in my area?

I would very much like to know how the World Bank obtained these facts and figures. Probably heard it from a man in a bar.

[RubbaJohnny]

Whether it is accurate is one issue,but of course the huge income of some skew the average

I imagine they look at GDP and divide

For example for 99 farmers with an annual income of 100$ their total 9900

One Hi so jet ski owner etc income 10,000,100 turns the average into 100 000

[jimbeam1]

I know a lot of Thai families up north that would disagree. While none of them live in squalor or have a lack of food, they certainly don't make that kind of money.

They don't buy their food, they find the majority of it in the jungle and grow the rest. Very seldom eat meat that they buy.

I don't see that as anywhere near upper middle income.

Very true, this is total rubbish.

Try telling the good news to the locals in my area?

I would very much like to know how the World Bank obtained these facts and figures. Probably heard it from a man in a bar.

Yes and you just have to look around Bangkok, at the poverty and squalor that many thousands live in.

Does this mean that Thailand has now emerged, or is it still emerging?

jb1