Thailand’s boom is sustainable, unlike the one in 1997

Thailand’s boom is sustainable, unlike the one in 1997 -SMCP, May 6, 2013
…The recent boom in public and private investment has unquestionably resulted in strong credit growth since 2010, but Thailand’s economy and finances appear to be on a firm footing, unlike in 1997.
Thailand’s public debt-to-GDP ratio is a modest 44 per cent. Household income is rising, thanks partly to two successive rises of 40 per cent in the minimum wage. And thanks to low global commodity and energy prices, inflation is benign.
The game-changer for Thailand in terms of investor perception came with the election of Yingluck Shinawatra as prime minister in 2011. The credit rating agency Fitch raised Thailand’s sovereign rating to BBB-plus in March, on the back of a new political stability…

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