[International] Thailand Rejects Economic 'Japanification,' Citing Five Factors for Future Trends
RtiTalk 小編19d ago
The Taiwan-Thailand Times reported today (1st) that Thailand's economy is facing pressures such as low growth, low inflation, and high household debt, leading to external attention on whether it is heading towards 'Japanification,' similar to Japan's long-term economic stagnation. The Bank of Thailand stated that although some economic data show similar characteristics, the causes and economic backgrounds faced by Thailand and Japan are different. Thailand still possesses untapped potential in its manufacturing and service sectors. What truly needs to be addressed are long-term structural issues such as insufficient income, household debt, and industrial transformation.
Pranee Suthasri, a senior director in the macroeconomic department of the Bank of Thailand, pointed out that 'Japanification' generally refers to a long-term state of low growth and low inflation. While Thailand is currently exhibiting some similar phenomena, it cannot be directly compared to Japan's situation. Thailand still has room to further enhance its production and service capabilities, and many of its current economic problems are caused by long-accumulated structural factors.
Among these, high household debt is one of Thailand's significant economic challenges. The root cause is that people's incomes are insufficient to cover living expenses and repay debts, thus these issues cannot be resolved by short-term measures alone. The Bank of Thailand has continuously worked to improve household debt through debt restructuring and promoting 'Responsible Lending.' However, the central bank believes that in the long run, increasing people's income is the core solution.
The Bank of Thailand also noted that the corporate sector must accelerate its transformation, introducing technology to adjust its operational and production models to increase productivity. Thailand has not yet fully utilized its existing production potential. If businesses can enhance efficiency through technology, it will help strengthen overall economic competitiveness.
The Bank of Thailand believes that Thailand still has economic potential to be further developed. Therefore, the current focus is not on whether it is entering 'Japanification,' but rather on whether it can continuously address structural issues such as income, household debt, and productivity, while also responding to uncertainties brought by the external economy, tourism, government policies, and climate change. (Editor: Hsu Chia-yuan)
Source Link: https://www.rti.org.tw/news?uid=3&pid=229433
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