Is the crisis worse than Tom Yum Kung?

Mr. Pitha admitted that At this time, the economy is not good, growth is really slow, and recovery after the COVID-19 situation is over. It’s still one of the slowest and worst in the world, but these are all structural problems. It’s not that the economy lost 20% of the crisis or the stock market lost more than half, like during the Tom Yum Kung crisis. Or the value of the baht adjusted to 50 baht from 25 baht. Now the situation is different.

“When the situation is different, then go say that it is the same. We immediately prescribed the wrong medicine. You will prescribe the wrong medicine. Because you misdiagnosed the condition. Now the economy is depressed. And then it absorbs for a long time. It’s been brewing for a year and it’s been brewing for 10 years, but the structural problems in exports are still the same. Things about the manufacturing sector remain the same,” Mr. Pitha said, adding that this year the budget was delayed. But I still feel that once the budget is passed, the government really intends to squeeze out useful projects. It’s not just a seminar or buying curtains. Injecting investment into the structure will cause GDP to grow.

Pitha also concluded by saying, Time to measure the economy If the measurement is wrong, then the compass is wrong. If we just measure GDP, how much has it grown? It does not measure inequality. Therefore, I would like to ask that you try to find new economic measures to take care of, such as how is the value added to the economy now? Or measuring people’s wealth (GDP per capita) doesn’t just look at the national level. But looking at the provincial level will make it easier to manage.

It becomes a matter of different perspectives that must be evaluated. OK, so what exactly is an economic crisis? Of course, from the government’s point of view, there is no budget available. Administration will ‘Limited deposits’ and pushing forward the digital wallet project is not easy. Because there are many Arahant stages. which is almost impossible Both about the money used in the project Various legal matters Including the method that looks like the chance of it happening is almost zero unless the Prime Minister and the Cabinet take risks to push this project out. As for fiscal measures, they have been used in almost every way.

It turns out that during this period, the thing that solves the economic problem the fastest is Using monetary policy which is a matter of reducing interest rates But this matter the government cannot do on its own because it is the duty of the Monetary Policy Committee (MPC) of the Bank of Thailand.

Therefore, in the past we have seen the actions of the Prime Minister. and many advisors Try to come out and jab. The Bank of Thailand has come out to reduce interest rates by using various words, including requests, comforting threats, and raising the issue of low economic growth as an issue.

Because on the one hand, it seems that the government has no way to solve the problem of low economic growth by itself at this time. Which must also prove the economic management skills of Mr. Settha’s government. How skilled are you? Because it’s really true. And the economic problems at this time are mainly structural problems. Our products cannot be exported to compete with others or our innovative technology. Including our costs cannot compete with foreign countries. Especially with China where we have a trade deficit of hundreds of billions of baht.

These issues The government must really focus on this, rather than waiting for the national bank to cut interest rates. Therefore, we will say that Thailand is now in crisis. To push for just giving away money It is unlikely to be an approach that will help Thailand in the long run. The important thing is that the government invests in the right way. and help the economic sector to restructure itself to be strong. and more competitive.

Lalitthep Sapmuang