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Thailand not in danger from stagflation, says finance minister


Thailand is not in immediate danger from “stagflation”, as the economy and employment are recovering gradually, Finance Minister Arkhom Termpittayapaisith said on Monday.

Stagflation occurs when inflation is coupled with slow growth and rising unemployment.

Arkhom said that inflation was currently a worldwide phenomenon but GDP growth was a crucial factor in determining whether a country was suffering stagflation.

Thailand’s GDP will grow 2.5 and 3.5 per cent this year, according to the government’s forecast, accelerating from 1.1 per cent in 2021.

Arkhom commented that the Thai economy was in recovery from the Covid-19 crisis, adding that action was being taken to ensure it does not slump again.

Employment was also recovering but wage levels depended on economic conditions, he said.

If full wage levels are restored but product prices increase, people’s purchasing power will still fall, Arkhom said.

He noted, however, that the current situation was an improvement on the lockdown period, when the government intervened to help people suffering financial hardship.

Published : June 13, 2022

By : THE NATION