Higher wage to cushion global impacts on Thai economy: Kittiratt

He said that the euro zone crisis is worse than expected and this puts pressure on Thailand's exports.  

"Thailand no longer can depend largely on export income," he said at the Thammasat Economics Association's annual conference today.

He added that it is necessary that the minimum wage nationwide must be increased to Bt300 as this will bosot domestic consumption. He admitted that the higher wage would raise the production cost, but this could be offset by higher productivity.

The Bt300 daily wage is planned to take effect next year, amid outcry from small and medium-sized business operators. 

Yesterday, Moody's Investors Service downgraded France, stripping it of its prized "AAA" credit rating due to concerns over its prospects for economic growth and its exposure to Europe's financial crisis. The rating is now "Aa1". 

Today, finance ministers from the 17 European Union countries convene to say if they would approve a 31.5 billion euro loan - part of international rescue packages worth 240 billion euro - to Greece.

To receive the aid, Greece has had to impose strict austerity and reform measures. Two weeks ago, the coalition government narrowly succeeded in passing a (euro) 13.5 billion package of cuts, tax increases and reforms in order to secure the latest loan payment. Weighed down by austerity, the country is mired in a deep recession heading into its sixth year with more than a quarter of Greeks unemployed.