As the second decade of the 21st century unfolds, the ASEAN region has gained increased significance to the global economy and is setting in place the final measures to become the world’s newest economic community. United Nations Secretary General H.E. Ban Ki-Moon remarked that “This is the moment of ASEAN, now is the moment for ASEAN, to step in the global role.”
Thailand’s well-developed infrastructure acts as the strong shoulders carrying the country forward in the 21st century. For industries from agriculture to automotive, the facilities are in place to ensure smooth-running business operations.
The National Economic and Social Development Board released its report Economic Outlook, Thai Economic Performance in Q3 and Outlook for 2011 and 2012. There is no small amount of interest in the report, which is the first to be issued that will reflect the negative affect of the floods that hit the region, impacting Thailand, as well as Cambodia and Vietnam.
The World Bank East Asia and Pacific Update 2011, Navigating Turbulence, Sustaining Growth, is forecasting economic growth in the region remaining strong over the first half of the year, although moderating as a consequence of weakening external demand. “The global economic malaise has led policymakers to rethink their policies during the last six months. Fighting inflation and dealing with excess capital inflows that drove currency appreciation was a key priority before. Now the emphasis is on supporting growth.”
The recent flood crisis in Thailand will not have a long-term impact on the country’s property market. This is according to research and analysis by the consulting firm CB Richard Ellis (Thailand). In reports released between 3 and 20 November 2011, the company describes prospects in Thailand, as well as across the Asia-Pacific region, as generally upbeat.
The Oxford Business Group, in partnership with the accounting and advisory firm BDO, and with the Thailand Board of Investment, are in the process of preparing the third annual report on Thailand’s economy: The Report, Thailand 2012. The report will explore the economy’s resilience as manufacturing and tourism lead growth, and include such key issues as the tax environment in Thailand, and how changes in legislation and regulations affect investors.
Standard & Poor’s Ratings Services “affirmed its ‘BBB+/A-2’ foreign currency and ‘A-/A-2’ local currency sovereign credit ratings on the Kingdom of Thailand. The outlook on both foreign and local currency long-term ratings remains stable. Standard & Poor’s also affirmed the ‘axAA/axA-1’ ASEAN scale rating on Thailand. Thailand has a strong external position and light net government indebtedness. The country has enough fiscal flexibility to deal with the damage by recent floods.”
The floods have receded from Bangkok and much of the surrounding area, causing as much as 1.4 trillion baht in damage according to an assessment made by the World Bank, although half of that amount is deemed to be lost opportunities. With the protection of Bangkok successfully accomplished, the next task of the government is to turn its attention to renewing investor confidence in Thailand and in reinvigorating the tourism sector.