Bangkok: The Economics Association of Thailand has presented its perspective on the new government's economic policies for the upcoming four years, emphasizing the need for structural reforms and enhanced governance to address the slowing economic growth in Thailand.
According to Thai News Agency, the seminar titled "Economists' Perspectives on Government Policy Directions in the Next Four Years" saw economists and experts gather to share their insights on the challenges and prospects for the Thai economy.
Dr. Kobsak Pootrakul, President of the Economics Association of Thailand, initiated the event by highlighting the uncertainty facing both the global and Thai economies. He mentioned that a lack of comprehension of the core economic issues could prevent effective policy formulation, essential for navigating the nation's economic challenges. Thus, the seminar invited senior economists to provide policy recommendations and a comprehensive overview of Thailand's economic trajectory.
During a panel discussion, Mr. Banyong Pongpanich, Chairman of the Executive Board of Kiatnakin Phatra Bank Public Company Limited, noted the continuous decline in Thailand's economic growth rate. He shared that prior to the 1997 crisis, the economy grew at an average rate of 7.5% per year, which reduced to 5% post-crisis and further to 3% after the 2008 financial crisis. Following the COVID-19 crisis, the growth rate has dropped below 2%. Mr. Banyong attributed this decline not only to short-term economic management but also to institutional factors like democracy, transparency, education quality, and rule of law, which are vital for successful economic development.
The seminar suggested that Thailand should urgently enhance governance standards, particularly in curbing corruption by creating an ecosystem that makes it challenging to engage in corrupt practices. It also called for improved public administration standards, aligning with the Organization for Economic Co-operation and Development (OECD) framework.
Dr. Kiatipong Ariyaprajya, Senior Economist for Thailand at the World Bank, remarked on the global economy's expansion amidst uncertainties such as global supply chain changes and technological competition. He recommended focusing on increasing economic competitiveness, developing labor skills, and balancing fiscal policy to boost investment appeal and long-term competitiveness.
Dr. Nipon Puapongsakorn from the Thailand Development Research Institute (TDRI) discussed the agricultural sector's challenges, noting that existing policies have not effectively addressed structural issues like low productivity. He emphasized the need for sector restructuring, increased research and development, farm consolidation, and developing climate-resilient plant varieties.
Economists at the seminar concurred that Thailand urgently needs to accelerate structural reforms, enhance economic institutions, and boost human capital and productivity to achieve sustainable long-term growth and adapt to future global economic changes.