Bangkok:Mr. Korn Chatikavanich, Deputy Leader of the Democrat Party and former Minister of Finance, has expressed concerns over Thailand's current economic situation, describing it as a transition from a 'golden age' to becoming the 'sick man of Asia.' His remarks coincide with Thailand hosting the World Bank and International Monetary Fund (IMF) Group Annual Meetings in Bangkok, an event the country last hosted in 1991.
According to Thai News Agency, Mr. Korn used his personal Facebook page to reflect on the drastic changes in Thailand's economic climate since it last hosted the meetings. Back in 1991, the Thai economy was rapidly expanding at an average growth rate of 8% per year, following three years of double-digit growth, which generated a surge of investment confidence known as "Animal Spirit." At that time, Thailand's credit rating was significantly higher, and the event was seen as a testament to the country's global economic emergence.
Mr. Korn highlighted the economic vulnerabilities of that era, including a current account deficit of 7.7% of GDP and a sharp increase in foreign debt, which contributed to the Tom Yum Kung crisis in 1997. Fast forward to the present, he warns of a different set of challenges as Thailand prepares to host the summit again in 2026, with concerns about being perceived as the "Sick Man of Asia" due to lagging economic growth compared to other ASEAN nations.
He identified several structural problems facing Thailand, such as an aging population combined with high household debt, which is among the highest globally. Furthermore, although substantial investments have been made in data centers and AI technology, these have not translated into significant job creation for Thais, posing a risk if global AI trends falter.
Additionally, Mr. Korn criticized the low policy interest rate of 1%, which he believes creates a misleading sense of stability similar to the past, and pointed out the growing budget deficit due to rising expenditures without corresponding revenue increases.
The former Minister of Finance emphasized the fading "animal spirit" in Thai society, which once drew talented Thais back home but now sees many looking to settle abroad. He concluded by urging Thais to consider the future trajectory of the country's economy, warning of a gradual decline without immediate crisis signals that could galvanize action.