Economist urges Thai govt to spend more to shore up slow economy

Economist urges govt to spend more to shore up slow economy

By The Nation

 

800_c985ecab8173fcd.jpg

Virabongsa, chairman of Bangkok Expressway and Metro Public Company Limited

 

Virabongsa Ramankura, a former finance minister and noted economist, is urging the government to spend more as the economy slows down due to a trade war between the world’s two largest economies – the US and China. 

 

Virabongsa, who was also formerly a deputy prime minister, said the government should not worry about the country being hit by a debt crisis like in 1997, adding that the public debt is only 42 per cent of the gross domestic product (GDP), which is quite low. 

 

He said the government could borrow more money or push the debt up to 70 per cent of the GDP. The economist also said it was a pity that the government has not been using its financial resources effectively to boost growth. 

 

The government could also unlock high liquidity in the financial system to benefit investments, he said, adding that regulations restraining the disbursement of funds to promote public investments should also be relaxed. 

 

He also put the slowdown to public infrastructure projects that are stalled, adding that the government has not been taking advantage of the fact that the country has a high current-account surplus. 

 

“This is a weak point of the military government, which deploys state officials for work. This is in contradiction to an elected government, which is usually under high pressure to deliver outcomes,” he said. 

 

However, he said, he agreed with the government’s project of giving cash to farmers. 

 

He said Thailand could not avoid the impact from the trade war as exports account for 75 per cent of the GDP. Thai exports have contracted due to a slowdown in the global economy and the strengthening baht is also worsening matters for the export sector, he said.

 

Source: https://www.nationthailand.com/business/30376048

 

nation.jpg

-- © Copyright The Nation Thailand 2019-09-11
Follow Thaivisa on LINE for breaking Thailand news and visa info
latest news from Thailand

PM and former PDRC leader Suthep have first encounter for 5 years  Prime Minister Prayut Chan-o-cha had his first close encounter in over five years with Mr. Suthep Thaugsuban, the former leader of the People’s Democratic Reform Committee, during his visit to Koh Samui in Thailand’s southern...

READ MORE...

Nationwide donations for flood victimsTanakorn Sangiam  BANGKOK, 14 September 2019(NNT) - People from across the country have continued to donate cash and necessities to help those affected by flooding. In Maha Sarakham, a charity concert has been held with several artists performing to express...

READ MORE...

Worries rise as baht scales six-year highBy The Nation  The baht continued its upward trend, appreciating to Bt30.42 to the US dollar on Friday, up from Bt30.67 the previous Friday, after having risen to a six-year high of Bt30.36 at some time during the day. Regional currencies also moved up...

READ MORE...

Network launches campaign to help women avoid sexual harassmentBy The Nation Nation/Anant Chantarasoot A network of organisations has joined hands to officially launch a campaign seeking people's help in identifying areas in Bangkok city where women could be at risk of sexual harassment, and for...

READ MORE...
sponsors