New crisis seen as unlikely, economists say, but caution urged
Economists have urged caution while watching for a continuing recovery, recalling the adage about the frog that died by failing to notice that the pot of water it was sitting in was slowly coming to a boil. “It is almost a consensus among economists that the economy has been recovering,” Sakon Varanyuwattana, dean of Thammasat University’s faculty of economics, said on March 20 at a forum called “Thai Economy 2017: Som Tum Crisis?” Four engines – consumption, private investment, exports and public investment – contribute to economic growth, he said. However, he warned that the government should not increase tax rates at this time because that would dampen the recovery. He added that taxes should be raised in order to finance budget deficits, but this is not the right time.
