Thailand sinking fast as FDI drought takes hold
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There appears to be no respite to the continuing dire reports concerning the beleaguered Thai economy.
Official data recently released indicate that foreign investment in Thailand plummeted 78 per cent in 2015. This, plus falling exports, staggeringly high household debt and lower consumer confidence are all adding to Thailand’s economic woes.
While tourism numbers appear, on the surface at least, to offer some encouragement to the military junta, there can be little doubt that the rapid decline in tourist numbers from the higher-spending Western countries (in comparison to China in particular) has significantly impacted revenue in government coffers.
There appears little room for manoeuvre for the government, with Vietnam showing record investment in 2015, as well as its fastest growth in five years, and with Myanmar and Cambodia also offering stiff competition.
While the military coup in May 2014 brought some initial stability, with elections promised within 12 months, the current political uncertainty does not appear to offer the necessary climate to attract much-needed foreign investment to arrest the decline suffered in 2015 and kick-start the economy.
It is therefore not words that are needed now but actions if more serious consequences to the economy are to be avoided.
Lawrence Tilney
Chon Buri
