BANGKOK, Aug 14 – The Thai economic outlook may be the worst in the region thanks to heavy foreign dependency, said outgoing Bank of Thailand governor Veerathai Santiprabhob.
As his term is due to expire at the end of September, Veerathai suggested economic restructuring to shift from dependence on the foreign sector to the domestic sector, Thai news agency (TNA) reported.
He viewed that it could take two years for Thai economy to return to pre- pandemic economy. Although, the Thai economy has already bottomed out in the second quarter, it cannot be optimistic because other countries, particularly Thai trade partners are still facing the problems.
He also advised wise use of limited resources in the public and private sectors. The government’s measures should have specific targets and concerning higher unemployment rate, the government should create at least one million continuous jobs.
The policy rate should remain low until a clear sign of economic recovery and it also depends on the inflation outlook. Existing monetary and financial tools are more limited, so the government’s policies should be integrated.
He said he was confident that the next governor Sethaput Suthiwart-Narueput to succeed him on Oct 1 will be able to continue the BoT strategies as he had six years of experience as a member of the BoT’s monetary policy committee.
The new governor should push ahead for debt and business restructuring and create stability of the whole monetary system besides the commercial banking system, he added.