Macro Signals Declining Efficiency of Investment

It may be useful to put the discussion of performance constraints of the Thai economy briefly in perspective. Over the past 2 decades, the Thai economy has been one of the best performing economies in the world, characterized by sustained high growth rates, averaging 10.3% 1985-90, and 8% in the years prior to the crisis (1990-96). This growth was accompanied by a dramatic decline in the incidence of absolute poverty, from 57% in 1962 to 14% in 1992, with per capita income …

…export) growth? If yes, then resolving the present crisis in terms of restoring the Thai economy’s performance is likely to require a focus on the “real sector” simultaneously with addressing the problems of the financial sector. This is likely to be especially important for Thailand’s economic renewal and sustainable growth, given expectations of a global economic environment over the medium term characterized by slow growth and increasing competition for both markets and capital.