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Thai Government spendings to spur economic growth in second half


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Government spendings to spur economic growth in second half

 

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BANGKOK: -- Deputy finance minister Wisudhi Srisuphan yesterday voiced optimism that government spendings in infrastructure projects will help bolster economy with continual growth is expected in the second half of the year.

 

With a 3.8% increase in private consumption in the second quarter this year and higher tourism growth, he was confident of improved economic recovery.

 

Besides, government’s spendings on infrastructure mega projects would stimulate growth in the second half of this year.

 

His confidence of growth was also shared by the private sector.

 

Thai Bankers’ Association president Preedi Daochai forecast over 3% growth this year as economic performance in the past two quarters have been over expected.

 

Source: http://englishnews.thaipbs.or.th/government-spendings-spur-economic-growth-second-half/

 
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-- © Copyright Thai PBS 2016-08-19
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1 hour ago, NCC1701A said:

good. spend it all. 40 baht to the US dollar here we come.

 

Only when the debt is too high will this fail. The Thai debt vs GDP is still much lower as for many Western countries (certainly lower as that of the USA) its at 44% (most European countries are happy to have 80%) Dutch debt is 65,4% of the GDP and the Dutch are one of the better European countries in this aspect.

 

The USA has 104,7 % according to the internet.. so in this aspect Thailand is good. 

Edited by robblok
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4 hours ago, Jimbo2014 said:

If only economies grew watered on confidence alone, Thailand would be the redwood of asian economies ?

Reuters seem to agree with him. Financially they do seem to have managed their economy rather frugally. Look at some of the statements coming from the UK regarding brexit, some seem to be swooning with over confidence.   

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1 hour ago, robblok said:

so in this aspect Thailand is good

Yes - All things being equal as the saying goes.

But Thailand is not equal to the US (or China, Russia, the UK, Japan, etc.) overall in terms of having control domestically and globally over its economy as an advanced developed nation  compared to Thailand that is still an emerging economy. Thailand's ability to improve its GDP growth is highly dependent on still developing domestic methods of high-value production away from an agarian base to a highly skilled intellectual property-based economy. Meanwhile Thailand's household debt at 80% GDP, nominal inflation, unskilled labor force and aging society will continue to dampen its opportunities.

 

On a global scale Thailand is an economic "trailer" and not a leader. It is not able to strategize global economic goals with other economic leaders such as the G20 to create favorable new markets and investment opportunities. 

 

So yes, in an economic micronism, Thailand is good. Step outside the country even just into some of the other ASEAN nations and the economic picture is not so glowing.

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Deputy Wisudhi Sriusphan is about half right when he says infrastructure spending can have an impact on the economy. Depends what is spent it on and the quality of materials and work you get for your money.

 

For example public spending on war games toys like submarines and tanks only creates unnecessary debt so those sorts of things should be excluded from the debate.

 

Serious infrastructure spending on things as highways, rail systems, under and over passes, bridges is a good thing and can create employment and cashflow to boost the economy. Problem is that if those employed are on such projects are hopeless and inexperienced workers then money is wasted. I suspect that is why we have an emergency call number for people who might see structures that are just about to collapse.

 

The government's heart is in the right place with infrastructure spending but they need to keep in mind the deficit which is blowing out month by month and will grow significantly from infrastructure spending.

 

Military governments are traditionally big spenders and worry little about national debt.

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48 minutes ago, Srikcir said:

Yes - All things being equal as the saying goes.

But Thailand is not equal to the US (or China, Russia, the UK, Japan, etc.) overall in terms of having control domestically and globally over its economy as an advanced developed nation  compared to Thailand that is still an emerging economy. Thailand's ability to improve its GDP growth is highly dependent on still developing domestic methods of high-value production away from an agarian base to a highly skilled intellectual property-based economy. Meanwhile Thailand's household debt at 80% GDP, nominal inflation, unskilled labor force and aging society will continue to dampen its opportunities.

 

On a global scale Thailand is an economic "trailer" and not a leader. It is not able to strategize global economic goals with other economic leaders such as the G20 to create favorable new markets and investment opportunities. 

 

So yes, in an economic micronism, Thailand is good. Step outside the country even just into some of the other ASEAN nations and the economic picture is not so glowing.

You are  gentle apologist for the pathetic military economic management of Thailand. You let them down nicely.

To contradict you I state that economic growth outside Thailand is booming.

Thailand's GDP will be lucky to make 3% (if one can believe the lies dished up by the military economic intelligentsia) while Vietnam is running at 6.7% and Myanmar at 7.4%. 

These two economies are going gangbusters while in Thailand everything is stagnating. Foreign investors ran like wildlife from a bushfire when the military took over. It will be a while before they come back. The economic grass won't grow again while the military has the reigns of the economy.

Anyway you believe what you want and invest your own money in Thailand and see how long it lasts.

Good luck.

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1 hour ago, Brer Fox said:

To contradict you I state that economic growth outside Thailand is booming.

Let me try to clarify - Step outside the country even just into some of the other ASEAN nations and the economic picture [FOR THAILAND] is not so glowing. You are repeating what I said.

No apology is necessary.

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Has the General spent any large amounts on major projects or started major projects. So if you are not spending, you should be saving? If there are over 1000 generals/admirals and air vice marshals where are their super contributions coming from? if the Government is not instigating new projects. Maybe it is a good time in the economy to spend some money to improve the social well being of all Thais.

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11 hours ago, Srikcir said:

Yes - All things being equal as the saying goes.

But Thailand is not equal to the US (or China, Russia, the UK, Japan, etc.) overall in terms of having control domestically and globally over its economy as an advanced developed nation  compared to Thailand that is still an emerging economy. Thailand's ability to improve its GDP growth is highly dependent on still developing domestic methods of high-value production away from an agarian base to a highly skilled intellectual property-based economy. Meanwhile Thailand's household debt at 80% GDP, nominal inflation, unskilled labor force and aging society will continue to dampen its opportunities.

 

On a global scale Thailand is an economic "trailer" and not a leader. It is not able to strategize global economic goals with other economic leaders such as the G20 to create favorable new markets and investment opportunities. 

 

So yes, in an economic micronism, Thailand is good. Step outside the country even just into some of the other ASEAN nations and the economic picture is not so glowing.

Thailand its GBP is growing faster than that of many European countries (I know developing vs developed). Fact is.. they can go on with government spending for a long time before they are as high as Europe or the US. So in this aspect they can stimulate their economy.

 

Yes compared to the rest of Asia its not doing that great that is for sure. I was just commenting on the debt they have so they can stimulate their own economy for quite some time before it goes wrong. Still its not doing great never said they were but the economy is still growing.. not as fast as its neighbors but its growing. 

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10 hours ago, Srikcir said:

Let me try to clarify - Step outside the country even just into some of the other ASEAN nations and the economic picture [FOR THAILAND] is not so glowing. You are repeating what I said.

No apology is necessary.

Thank you for explaining. The inclusion of those two words (FOR THAILAND) were vital to the intended meaning of your comment. 

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