Euro area woes driving Asia to seek sustainability, chamber says

Vichai Assarasakorn, secretary-general of the chamber, said yesterday that the gloomy outlook for the global economy, particularly in the West, had encouraged countries in Asia to find their own solutions for sustainable economic growth.

According to a study by the International Monetary Fund’s International Financial Statistics section, the euro area has high risk – more than 50 per cent – of a prolonged recession and deflation this year. Meanwhile, the United States’ economy has a 20-per-cent risk of recession, and Japan less than 20 per cent.

In 2013, Japan has the highest potential to experience recession at more than 35 per cent, followed by the euro area at 30 per cent and the US at 20 per cent.

Countries in Asia have little chance of facing economic recession, at less than 5 per cent, according to the IMF study.

However, to prepare for the impact of a global economic slowdown, the chamber suggests that Thai enterprises adopt the "sufficiency economy" as a model for business sustainability.

Thanavath Phonvichai, an academic at the University of the Thai Chamber of Commerce, said this theory would help prevent severe recession as the country relied less on other countries. Sufficiency economy can also drive economic growth and create fair practices for all sectors.

To build awareness among the business community of the sufficiency economy, the chamber will invite senior managers of leading local companies to share their experiences during the "Sufficiency Economy: Real Experience from Business Sector" forum on May 10 at the Centara Grand Bangkok.

Expected to participate are executives from CP Group, Saha Group, Thai Beverage, Boonrawd Brewery, Siam Cement Group, Muang Thai Life Assurance, Mitr Phol, PTT, True Corporation and Thai Union Frozen Products.

Former prime minister Somkid Jatusripitak will be a special guest speaker at the event.