Bangkok:At the recent IMF-World Bank event, Ekniti Nitithanpraphas and Witai Rattanaporn emphasized the importance of learning from the 1997 economic crisis to maintain stability while attracting foreign investment. They highlighted the need for technology transfer and quality improvement in Thailand's economic strategy. The Bank of Thailand raised concerns about structural issues within the Thai economy and stressed the necessity for coordinated monetary and fiscal policies to preserve policy space for withstanding economic shocks.
According to Thai News Agency, Deputy Prime Minister and Minister of Finance, Ekniti Nitithanpraphas, spoke at the 2026 IMF-World Bank Group Annual Meetings in Bangkok. He noted that Thailand has significantly progressed from an agricultural-based economy to an industrialized nation, driven largely by foreign investment. Ekniti reflected on the geopolitical climate of 1991, which saw Japanese manufacturing shift to ASEAN, including Thailand, boosting foreign direct investment.
This investment influx helped restructure Thailand’s economy and enhance labor skills, particularly in the Eastern Economic Corridor (EEC). The region's transition from agriculture to manufacturing has increased per capita income and reduced poverty considerably. However, lessons from the 1997 crisis revealed the risks of focusing solely on economic stimulus, leading to high debt levels that impacted the population and businesses.
Ekniti emphasized the importance of macroeconomic stability, supported by high international reserves relative to short-term foreign debt, as a cornerstone of economic resilience. Nonetheless, he acknowledged that stability alone is not sufficient for sustainable growth, especially with Thailand's aging population and shrinking workforce. Future growth will depend on productivity, digital technology, and human capital development.
Simultaneously, Thailand aims to attract foreign investment to align with the global supply chain and emerging industries. This approach requires workforce development through upskilling and reskilling to meet future labor market demands.
Witai Rattanaporn, Governor of the Bank of Thailand, highlighted ongoing challenges in the Thai economy despite reforms following the 1997 crisis. He projected modest GDP growth of 2.1-2.3% in 2026, affected by structural constraints. The financial sector reforms have made Thailand's system more resilient, but economic growth is hindered by these structural issues.
The Bank of Thailand advocates for coordinated efforts across agencies to resolve structural problems, emphasizing the alignment of monetary and fiscal policies. Maintaining policy credibility and discipline is crucial for building investor confidence and ensuring the capacity to manage future economic shocks without compromising long-term stability.