Finance Minister’s Way of the Cross : “economy could contract by 3 %”

medusa

The worse-than-expected economic recession worldwide has caused Finance Minister Korn Chatikavanij to announce that Thailand’s economy could decline by 3 per cent in 2009, down from earlier estimations of between zero and two per cent. The government’s stimulus policies have also been taken into account for the projection.

In the case of the government policy failing to save the ailing economy, Korn said the economy could be slashed by 8 to 9 per cent and more than 2 million workers could lose their jobs.

He added that the government must inform the public of these facts, in order to build cooperation between the state and private sectors to alleviate the crisis. Furthermore, it will have to raise more public debt to supervise the economy, but cautious and transparent distribution of the budget is also imperative. (TOC)

Poor Korn ! A real Way of the Cross… On his way to the Via Dolorosa…

From incredulity, to denial. From denial to lies… And then the admission.

Well you know what we say : only stupid people do not change their mind. 😉

Reality check…

Anyway, for the entertainment we still have the Prime Minister Abhisit (“take 2000 THB, go spend, and you’ll be rich and the economy will boosted and you’ll win the lottery too. Don’t forget to vote for me. And please, don’t forget to love me“).

And of course the Bank of Thailand… Indeed, the BOT saw “signs of recovery” in january. Sounds like a century ago, I know.

Recovery is like the Loch Ness monster or Bigfoot : all the clowns are talking about it. But no one has seen it. Yet. 😉

More seriously : exports will continue to decline. Investments are in the toilets. Consumption is on holiday. Tax collections are melting like an icecream in Isaan.. What do we have left ? Governments spendings… With debts…

Not a very nice cocktail for any kind of recovery.

We don’t like it. We fear it. But we have to face it. The recession.

We have to look the gorgon Medusa in the eyes.

1 Response to “Finance Minister’s Way of the Cross : “economy could contract by 3 %””


  1. 1 Lothar 24 March 2009 at 1:01 am

    Today Germany came up with a prediction of 7-9% drop.
    All East Europe countries are expecting in general a drop of more then 10%.

    The dream is over. The last 20 years where total unrealistic and payed by dreams of borrowed money. And Thailand will be hit harder because their dream was even more unrealistic. I remember a BKK Post article in 2005 that even the air conditioning industry is not competitive anymore.


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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.


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