Economy
From The Report: Thailand 2017
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Thailand has benefitted from decades of rapid industrial development to become an upper middle-income economy, with GDP growth averaging more than 7% from the 1950s to the 1990s. However, more recent decades have been marked by an ongoing struggle to escape the middle-income trap. Growth sank in 2014 following a military coup, although political stability and solid macroeconomic fundamentals saw the country’s economic recovery continue in 2016, as GDP growth rose to a three-year high and export receipts increased for the first time since 2012. This chapter contains interviews with Somkid Jatusripitak, Deputy Prime Minister; Porametee Vimolsiri, Secretary-General, National Economic and Social Development Board; and Yol Phokasub, President, Central Group.

Articles from this Chapter

Overview

Investing in the future: Public funding is behind the push to support industries and boost economic growth
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Thailand has benefitted from decades of rapid industrial development to become an upper middle-income economy, with GDP growth averaging more than 7% from the 1950s to the 1990s. However, more recent decades have been marked by an ongoing struggle to escape the middle-income trap. Growth sank in 2014 following a military coup, although political stability and solid macroeconomic fundamentals saw the country’s economic recovery continue in 2016, as GDP growth rose to a three-year high and…

Interview

Enabling growth: Porametee Vimolsiri, Secretary-General, National Economic and Social Development Board, on plans to diversify the economy
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Interview: Porametee VimolsirI To what extent did Thailand exceed expectations in 2016, and what is your outlook for 2017? PORAMETEE VIMOLSIRL: After recorded growth rates of 0.8% and 2.8% in 2014 and 2015, respectively, 2016 saw the economy expand by 3.2%, a rate which we consider to convey a stable and growing economy that is picking up steam. At the beginning of 2016, some forecasters had quite pessimistic views of the national economy, but strong indicators during the first half of 2016 quelled…

Analysis

Supporting development: Additional spending fuels the drive to stimulate activity
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Thailand’s budgets for 2017 and 2018 will see a significant increase in spending and public investment as the government moves to boost economic growth through infrastructure development, expansion of value-added manufacturing and support for small businesses and the service economy. The 2017 budget forecasts a spending increase of over 20% following the approval of a supplementary spending increase in early 2017. Much of the new spending will be devoted to support mechanisms for value-added…

Interview

Steady and strong: Kalin Sarasin, Chairman, The Thai Chamber of Commerce and Board of Trade of Thailand, on the flow-on effects of tourism
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Interview: Kalin Sarasin To what extent is the Thai private sector embracing sustainable growth models? KALIN SARASIN: At present, sustainability is the keyword for the Thai private sector. Many companies, large and small, are espousing His Majesty the late King Bhumibol Adulyadej’s Sufficiency Economy Philosophy (SEP), which stresses the importance of doing neither too much nor too little. In a business context, this means exercising caution, not scaling up production to an unsustainable level…

Analysis

From the ground up: Small business is the heart of the government growth strategy
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Accounting for the majority of businesses and a significant source of employment and export earnings, small and medium-sized enterprises (SMEs) play an important role in Thailand’s economic development. The SME segment has struggled in recent years, however, and currently accounts for the largest proportion of non-performing loans (NPLs), while export-oriented SMEs have struggled to increase their share of the country’s total export receipts. The government is intensifying its focus…

Analysis

Attracting interest: Incentives to encourage foreign investment in targeted industries
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With plans to boost foreign investment in key industries, the government announced a series of new incentives and support mechanisms in late 2016 and early 2017. These new measures – many of which will be administered through the Board of Investment (BOI), the government’s investment promotion arm – are set to come into force in the first quarter of 2017. Incentives will be made available and prioritised for high-value and innovative activities, with a focus on the network of special…

Interview

Growth drivers: Yol Phokasub, President, Central Group, on e-commerce, ASEAN investment and tourism
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Interview: Yol Phokasub Will Thailand’s shift towards e-commerce and e-payment systems affect consumer spending? YOL PHOKASUB: Whileeconomic andconsumer spendingin Thailandhave been somewhatlacklustrein recent years, somegrowthhas been seen.Also, despite robustexpansionin recent years, the e-commerce consumer market remains relativelymodest compared to the overall market,hinderedbyrelatively slowoverallconsumer…