Thailand
Thailand: Banker shrugs off poll impact
Thailand’s economic growth is projected to expand by 4.1% regardless of the outcome of the upcoming general election, with domestic growth engines expected to drive the uptick, says an executive from Bank of Ayudhya (BAY).
But the country still needs to resolve persistent structural problems and address human capital development to enhance long-term competitiveness, said Somprawin Manprasert, executive vice-president at BAY.
GDP growth in 2019 is anticipated to be driven by domestic factors, particularly public and private investments, with the sum of large public investment projects valued around 90 billion baht this year, rising to 290 billion next year, said Mr Somprawin.
Continuity in public investment projects, such as approved projects and those associated with the Eastern Economic Corridor, will help propel economic growth going forward no matter which political party wins the general election, he said.
“The economic [growth] cycle is projected to propel itself, with a reduced emphasis on domestic political developments,” said Mr Somprawin.
Thailand delivered the best annual growt pace in five years of 4.9% in the first quarter of 2018, but the pace cooled to 4.6% in the second quarter and 3.3% in the July-September period.
Despite the business cycle recovery, the country still faces structural problems that need to be addressed urgently as global structural changes have induced disruption among several industries, he said.
“My point is not about how to make economic growth expand by more than 4.1%, but rather about building long-term competitiveness by managing technological disruption and using technology to improve livelihoods,” said Mr Somprawin.
“Thailand has a high rate of digital technology adoption among individuals, with reasonably good mobile penetration, but the use of technology to improve people’s lives is not on par with developed countries.”
There should be measures to support those affected by technological disruption, such as employees working in broadcast media and other industries who are laid off, he said.
Enhancing workers’ skills and creating a more mobile labour market through equal opportunity were suggestions to help solve persistent structural problems from Mr Somprawin.
Source: https://www.bangkokpost.com/business/news/1597502/banker-shrugs-off-poll-impact