News / Asia

Thai Economy Shows Signs of Improvement After Coup

Soldiers check rice stocks at a warehouse in Ayutthaya province, north of Bangkok, Thailand, July 3, 2014.
Soldiers check rice stocks at a warehouse in Ayutthaya province, north of Bangkok, Thailand, July 3, 2014.
Ron Corben

As Thailand’s military presses on with economic reforms, the country’s economy is showing signs of recovery following months of political turmoil that led to the military coup in May.

Thailand's central bank said it expects to see signs of economic growth by the second half of 2014, as the military government presses on with reforms and restructuring.

The central bank forecast a 5.5 percent rate of growth in 2015.

During the first three months of the year, when government decision making was largely paralyzed by political turmoil, the economy contracted by 2.1 percent, compared to the previous three months.

But since ousting the civilian government May 22, surveys have indicated business and consumer confidence has revived, and the stock market is ahead.

Recovery seen

Narongchai Akrasanee, an adviser to the ruling National Committee for Peace and Order (NCPO) and a member of the central bank's monetary authority, said the economy is recovering as the government sets in place a new budget and investments.

"Many of the policies which were implemented by the last government were not able to be carried out or some of them were carried out in a very bad way so this new administration is just trying to unblock many of these things," Narongchai said.

"We're coming back. We've been in a difficult position for many years. In the eyes of lots of foreigner investors - the message I want to say is we are coming back," he added.

Business analysts said the military appears to have learned lessons from the 2006 coup, when its reform proposals stall.

The current government has moved quickly on a range of issues, including meeting outstanding payments to rice farmers, and starting massive new transportation and water management infrastructure projects.

Angus Kent, managing director of Macquarie Securities in Thailand, said the military's initial moves have been seen as positive by business, including foreign investors.

"It comes down to the reforms on a structural basis. I think the engagement from the NCPO with the chambers of commerce and other agencies have been a big positive," Kent said. "There also seems a sense of urgency to get things done, which I think from many people's experience in the room - urgency in the past is not something we're accustomed to."

Reform bureaucracy

The military has also moved to reform the bureaucracy and to reduce the influence of former leader Thaksin Shinawatra, who has lived abroad since 2008 to avoid a jail sentence for corruption.

Pavida Pananond, an associate professor at Thammasat University's business school, said the military has moved to combat corruption as well as restructure boards of state-owned enterprises.

"Another area is the intention to clean up corruption. It's a welcome move," Pavida said. "We can see now a lot of things have been addressed for example the boards of the state-owned enterprises have seen many resigned and some of the senior technocrats have also been moved to inactive posts in the office of the prime minister."

The government has set out a $75 billion infrastructure spending program on new rail links and highways. But it also put a halt to projects of the previous government that they claim may have been tainted by corruption.

You May Like

Unpaid Kurdish Fighters Sign of Economic Woes

Sharp cuts in Kurdistan's budget by Baghdad, falling oil revenue, coping with refugees, inflated public sector have hit regional economy hard More

Koreas Exchange List of Envoys for Family Reunion Talks

Officials will discuss date, venue and number of participants for reunion; Seoul hopes to hold event late this month More

China Targets 197 in Online Speech Crackdown

Nearly 200 punished for 'spreading rumors' online in ongoing crackdown on free speech More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Calais School Offers Another Face of Europe’s Migrant Crisisi
X
Lisa Bryant
September 02, 2015 6:19 PM
Europe is facing mounting criticism over how it’s handling its biggest migration crisis since World War II. But not all Europeans believe building walls or passing repressive policies are the answer. A school for migrants in the French port city of Calais, is opening doors and building bonds across nationalities. VOA's Lisa Bryant reports.
Video

Video Calais School Offers Another Face of Europe’s Migrant Crisis

Europe is facing mounting criticism over how it’s handling its biggest migration crisis since World War II. But not all Europeans believe building walls or passing repressive policies are the answer. A school for migrants in the French port city of Calais, is opening doors and building bonds across nationalities. VOA's Lisa Bryant reports.
Video

Video Russia-Japan Relations Cool as Putin Visits China for WWII Anniversary

Russian President Vladimir Putin is in Beijing for commemorations of the 70th anniversary of China's WWII victory over Japan. Putin is expected to visit Japan later this year, but tensions between Tokyo and Moscow over islands disputed since the war, and sanctions over Ukraine, could pour cold water on the plan. VOA's Daniel Schearf reports.
Video

Video Kurdish Fighters on IS Frontline Ready for Offensive

Finger on the trigger, the Kurdish Peshmerga soldier stared across the dust at a village taken over by Islamic State extremists. The Kurdistan’s Khazir frontline, just 45 minutes from the Islamic State stronghold of Mosul. And at this point, the militants were less than two kilometers away. VOA's Sharon Behn reports.
Video

Video Yemen ‘on Brink of Disaster’ as Medical Shortages Soar

Aid agencies warn Yemen is on the brink of humanitarian disaster – with up to half a million children facing severe malnutrition, and hospitals running out of basic medicines. There are fears Yemen's civil war could escalate as the coalition led by Saudi Arabia tries to drive back Houthi rebels, who seized control of much of the country earlier this year. Henry Ridgwell reports.
Video

Video Apps Helping Kenyan Businesses Stay Ahead of Counterfeiters

Counterfeit goods in Kenya cost the government as much as $1 billion each year in lost tax revenues. The fake goods also hurt entrepreneurs who find it hard to carve out a niche in the market and retain customers. But as Lenny Ruvaga reports from Nairobi, information technology is being used to try to beat the problem.
Video

Video Nobel Prize Winner Malala Talks to VOA

Nobel Peace Prize winner Malala Yousafzai met with VOA's Deewa service in Washington Sunday to talk about women’s rights and unveil a trailer for her new documentary. VOA's Katherine Gypson has more.
Video

Video War, Drought Threaten Iraq's Marshlands

Iraq's southern wetlands are in crisis. These areas are the spawning ground for Gulf fisheries, a resting place for migrating wildfowl, and source of livelihood for fishermen and herders. Faith Lapidus has more.
Video

Video Colombians Flee Venezuela as Border Crisis Escalates

Hundreds of Colombians have fled Venezuela since last week, amid an escalating border crisis between the two countries. Last week, Venezuelan President Nicolas Maduro ordered the closure of a key border crossing after smugglers injured three Venezuelan soldiers and a civilian. The president also ordered the deportation of Colombians who are in Venezuela illegally. Zlatica Hoke reports.
Video

Video Rebuilding New Orleans' Music Scene

Ten years after Hurricane Katrina inundated New Orleans, threatening to wash away its vibrant musical heritage along with its neighborhoods, the beat goes on. As Bronwyn Benito and Faith Lapidus report, a Musicians' Village is preserving the city's unique sound.
Video

Video In Russia, Auto Industry in Tailspin

Industry insiders say country relies too heavily on imports as inflation cuts too many consumers out of the market. Daniel Schearf has more from Moscow.
Video

Video Scientist Calls Use of Fetal Tissue in Medical Research Essential

An anti-abortion group responsible for secret recordings of workers at a women's health care organization claims the workers shown are offering baby parts for sale, a charge the organization strongly denies. While the selling of fetal tissue is against the law in the United States, abortion and the use of donated fetal tissue for medical research are both legal. VOA’s Julie Taboh reports.
Video

Video Next to Iran, Climate at Forefront of Obama Agenda

President Barack Obama this week announced new initiatives aimed at making it easier for Americans to access renewable energy sources such as solar and wind. Obama is not slowing down when it comes to pushing through climate change measures, an issue he says is the greatest threat to the country’s national security. VOA correspondent Aru Pande has more from the White House.
Video

Video Arctic Draws International Competition for Oil

A new geopolitical “Great Game” is underway in earth’s northernmost region, the Arctic, where Russia has claimed a large area for resource development and President Barack Obama recently approved Shell Oil Company’s test-drilling project in an area under U.S. control. Greg Flakus reports.
Video

Video Philippine Maritime Police: Chinese Fishermen a Threat to Country’s Security

China and the Philippines both claim maritime rights in the South China Sea.  That includes the right to fish in those waters. Jason Strother reports on how the Philippines is catching Chinese nationals it says are illegal poachers. He has the story from Palawan province.
Video

Video China's Spratly Island Building Said to Light Up the Night 'Like A City'

Southeast Asian countries claim China has illegally seized territory in the Spratly islands. It is especially a concern for a Philippine mayor who says Beijing is occupying parts of his municipality. Jason Strother reports from the capital of Palawan province, Puerto Princesa.

VOA Blogs