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Nearly 30 years after IMF rescue, Thailand faces new economic test
Finance Minister Ekniti Nitithanprapas is pressing reforms to lift investment, as public debt nears 70% of GDP and growth averages 2.34% a year.
- Next week, Bangkok will host the annual meetings of the International Monetary Fund and World Bank. Finance Minister Ekniti Nitithanprapas seeks to steer Thailand's economy through a new challenge: escaping years of sluggish growth nearly 30 years after the 1997 financial crisis.
- Following the re-election of Anutin Charnvirakul in February, relative political calm provides relief to an economy that has grown by an average of 2.34% annually over the last five years, building on political ownership established after 1997 by former Prime Minister Chuan Leekpai.
- Thailand's public debt-to-GDP ratio nears the 70% ceiling, and investment-to-GDP has declined to around 22% to 23%, Ekniti told Reuters. Fitch Ratings revised the nation's outlook to "stable" last month, citing resilience despite these structural headwinds.
- Ekniti outlined a plan to hit 3% growth within three years by drawing foreign investment into semiconductors, data centres, and electric vehicles. The central bank remains more conservative, projecting a potential growth rate of 2.7% that could take at least four years to reach.
- IMF Managing Director Kristalina Georgieva warned the global economy faces risks from high energy prices and record public debt. Amid this fragmented world, Ekniti believes "Thailand can be a trusted connector" to link fragmented economies and position the nation for sustained development.
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