This article talks about the The Thai economy which is in good shape . Thailand's economy grew by 3.6% , its predicted GDP forecast was for 15% but it turned out to be at 18.9%. These data also support the fact that the central bank would not be lowering its interest rates any time soon.
Thai economy suffered a lot from the floods and the export levels fell . Exports are a main factor which the Thai economy depends on and seeing the fall in demand from the global markets , hit the Thai economy harder. As a result of this the government decided to bring the domestic demand up to cover for the falling exports to help the economy to keep on growing and the government also announced that it would spend around $65 billion on infrastructure to help build lost infrastructure. The only problem to look forward would be that of inflation.
http://www.bbc.co.uk/news/business-21495707
Thai economy suffered a lot from the floods and the export levels fell . Exports are a main factor which the Thai economy depends on and seeing the fall in demand from the global markets , hit the Thai economy harder. As a result of this the government decided to bring the domestic demand up to cover for the falling exports to help the economy to keep on growing and the government also announced that it would spend around $65 billion on infrastructure to help build lost infrastructure. The only problem to look forward would be that of inflation.
http://www.bbc.co.uk/news/business-21495707
It is good that the Thai economy is looking optimistic at the moment, but the government spending 65 billion dollars could greatly increase national debt, causing other problems. Yes, there could be inflation. Hypothetically, the government could try to recover from the debt, funding its activities by printing more money, then printing more money, and then printing even more money, creating the vicious circle of hyperinflation if they are not careful in their spending. It can cause economies to collapse. This may be looking a bit far into it, but the Thai government could be digging itself an even deeper hole than it initially appears to be.
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