Thailand Is Being Too Good for Its Own Good
Thailand really should let its hair down. The currency is strong and the current-account surplus is big versus the neighborhood, while there's a lot of scope for fiscal expansion. The Bank of Thailand has been grudging in cutting interest rates, in contrast to the easing party under way not just in Asia but in emerging and developed markets the world over.
Two decades ago, a perky currency would have been a great problem to have. Today, the baht's strength masks an array of problems, some of them distinctly first world in nature. Inflation is virtually non-existent; consumer prices rose just 0.3% from a year earlier in September. Productivity is low and wages are high for the region. Thailand’s aging population means it resembles Japan and South Korea more than Malaysia, the Philippines or Indonesia. Unemployment is low, in part because the labor force is shrinking.
Thailand’s politics are also looking old. The military has staged two takeovers since 2006 in the ongoing feud against the populist former prime minister, Thaksin Shinawatra, and his partisans. A long-delayed election in March that extended coup leader Prayuth Chan-Ocha’s tenure as prime minister is a throwback to the era of military-dominated politics that South Korea, Taiwan, Indonesia and the Philippines learned to leave behind.
https://www.yahoo.com/news/thailand-being-too-good-own-032343305.html