As Bangkok 'shutdown' looms, Thailand's 'Teflon' economy put to the test

[webfact]

As Bangkok 'shutdown' looms, Thailand's 'Teflon' economy put to the test

BY ORATHAI SRIRING AND PAIRAT TEMPHAIROJANA

Bangkok

(Reuters) - It has been nicknamed "Teflon Thailand" - an economy seemingly impervious to any lasting effects from regular spasms of violent political unrest.

But with protesters vowing to "shut down" Bangkok on January 13 in their two-month-old bid to topple Prime Minister Yingluck Shinawatra, the nickname seems more like a taunt.

For while Southeast Asia's second-largest economy has proven surprisingly resilient to past unrest, analysts see signs of deeper damage this time that could pose longer-term problems for a country already grappling with slowing growth and outflows of global capital from its fragile financial markets.

Tourism is taking a hit, infrastructure spending is delayed and investors and consumers are uneasy over a political crisis that promises more violence but no real solution.

The stock market is the worst performer in Southeast Asia and the currency has been falling since October.

Full story: http://www.reuters.com/article/2014/01/09/us-thailand-economy-idUSBREA081DI20140109

-- REUTERS 2014-01-10

[EricBerg]

And national debt is growing fast.

[tx22cb]

Thailand's economy might have displayed Teflon-like properties 20 years ago. Not so today.

20 years ago, the alternatives in E Asia were pretty awful.

Japan/Korea/Taiwan were much more expensive places to invest, P'pines/Indonesia were in political turmoil, Vietnam/China were just emerging and had undeveloped infrastructure, Myanmar was still closed.

2014 is different. P'pines & Indonesia have stabilised and have much larger populations with more upside potential, China/Vietnam's economies are exploding, and Myanmar is now more open and is a good long-term bet.

As for tourism, Vietnam & Myanmar will benefit from Thailand's self-inflicted wounds.

Conclusion - Thailand should not be too smug these days and take things for granted ..... the world is a different place and the competition is stiff

[Emptyset]

And national debt is growing fast.

Nope. Source?

[Tarric]

Public debt is actually down 56.7 billion baht for the month of October. "Outstanding public debt totalled 5.37 trillion baht as of Oct 31, or 45.28% of GDP"

This level of public debt is actually quite sustainable, however that being said the government should be spending money on productive income generating assets (roads, schools, hospitals, railways etc) rather than paying farmers a massively inflated price for their rice or giving money to rich kids to buy their first car or house.

Edit: Grammar

Edited January 10, 2014 by Tarric

[noitom]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

[Emptyset]

Public debt is actually down 56.7 billion baht for the month of October. "Outstanding public debt totalled 5.37 trillion baht as of Oct 31, or 45.28% of GDP"

This level of public debt is actually quite sustainable, however that being said the government should be spending money on productive income generating assets (roads, schools, hospitals, railways etc) rather than paying farmers a massively inflated price for their rice or giving money to rich kids to buy their first car or house.

Edit: Grammar

Totally agree. The rice scheme is corrupt and there are far better ways to achieve redistribution. The BBC interviewed the government's chief advisor, Pansak, and he himself said as much. However, the amount of damage to the economy is being exagerrated by government opponents. Not defending the scheme, but the government is not 'bust' and public debt is sustainable at current levels, aiming to keep it around or just below 50% of GDP sounds about right. Thanks for the link too (Though given the source, I expect it'll be deleted).

[Pib]

Even Teflon wears out...and wears out much faster when not properly maintained. Thailand has never really been able to grasp the concept of preventive maintenance....but they are good at use it hard until it breaks.

[mojorison]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

What a crock of $hi*, surely you are joking.

[Pib]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

BS. You need to get outside of the bar zones, which every country has by the way.

[Ulic]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

Not sure if I have ever heard a bigger load of BS in my life. Thinking,.......... but can't remember ever. So this is # 1 for me.

[davejones]

And national debt is growing fast.

No it's not. Why do you feel the need to give false information? Or are you just too lazy to bother checking the facts?

[davejones]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

I find it funny that people who hang around red light districts end up thinking that the whole country is just like the very small area they hang out in. It's quite sad that there are many people who only have two things in their lives - bar girls and trolling. Takes all types I suppose.

[Thai at Heart]

Public debt is actually down 56.7 billion baht for the month of October. "Outstanding public debt totalled 5.37 trillion baht as of Oct 31, or 45.28% of GDP"

This level of public debt is actually quite sustainable, however that being said the government should be spending money on productive income generating assets (roads, schools, hospitals, railways etc) rather than paying farmers a massively inflated price for their rice or giving money to rich kids to buy their first car or house.

Edit: Grammar

Indeed I saw that figure. Does that however include directly say the rice figures? Are those considered off balance sheet because it is money owed to the bank and not directly by the govt?

That said, growth stalled last year due to the strongish baht and the world being in the poop. Bernanke is stopping to print cash so it will be a roller coaster year for Thailand. How low can the stock market go? How low will the baht go?,,34?

So the economy isn't Teflon whatsoever. Its been touched already.

[CantSpell]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

Can see this working good; then they can make a replica of the Eiffel Tower stocked up all the way to the top with pole dancers at democracy monument....

Would be more entertaining to the crowds than SuSu speeches

[theslime]

Thailand knows how to run sex and human trafficking trades. No other country in the world has a corner on sex as does Thailand. The sex segment of Thailand's economy will hold its own. As Thailand's financial and export industries continue to downsize and get squeezed by falling confidence, political instability, military force and corruption more and more Thais will enter the sex trade.

Free lancer bars in hotels and coffee shops will proliferate and Thailand's girls will be holding the foreign cash flow together. Crime will increase. Thailand will evolve into a very very dangerous and lawless place. The Thai south will continue to be a terror zone. But the Thai girls and other sex workers, pimps, children, gangsters, drugs and petty criminals will expand. Hats off to the Thai girls, the real backbone of the Thai economy.

There are a lot of Cuckoo Heads here Noitom, whom can,t see the tougue in cheek in your post. Keep up the good work as all politics and no fun makes the Slime a dull boy.