Bangkok: The overall Thai economy is projected to grow by 2.3% in 2026. However, beneath this positive figure lies a worrying trend of increasing inequality. Pranee Sutthasri, Senior Director of the Macroeconomic Department at the Bank of Thailand, defines this situation as a "K-shaped recovery," where the recovery of two distinct groups of people is not synchronized.
According to Thai News Agency, the recovery has been uneven, with the "Upper K" group benefiting from exports and investments in future industries such as AI, data centers, and electronics. This group, however, employs only 2% of the total workforce, concentrating the benefits within a small segment of the population. On the other hand, the "Lower K" group, which includes SMEs and traditional industries like internal combustion engine vehicle parts manufacturers, is struggling due to weak purchasing power, rising costs, and competition from cheap imported goods from China.
A significant issue is the liquidity crisis, as banks' caution makes it difficult for SMEs to access capital. There has been continuous negative growth in SME lending for 14 consecutive quarters. Financial institutions view this group as high risk, leading to difficulties in accessing necessary funds. As a result, small business owners are often forced to borrow from relatives or sell assets to maintain operations.
The Bank of Thailand has implemented three strategies aimed at preventing SMEs, which account for 70% of the country's employment, from facing overwhelming difficulties. These include debt restructuring through programs like "You Fight, We Help" and "Pay Off Debt Quickly, Move Forward," new funding initiatives such as "SME Credit Boost" and "SME Secure Plus," and cost-reduction measures, including cuts in bank fees for 19 items.
Despite these financial measures, Ms. Pranee emphasizes that money alone is not enough. SMEs must adapt and innovate in response to changing consumer behavior and global trends. This adaptation is crucial for SMEs to regain their position as a vital force in the Thai economy sustainably.