Nearly 30 years after IMF rescue, Thailand faces new economic test
Ekniti Nitithanprapas was a young graduate student in the United States when Thailand devalued the baht in 1997, setting off the Asian ‌financial crisis.
Nearly three decades after Thailand received financial aid from the International Monetary Fund to overcome the Asian financial crisis, the country faces a new economic challenge. Finance Minister Ekniti Nitithanprapas is tasked with steering the economy out of years of sluggish growth.
Investment in sectors such as semiconductors, data centers, and advanced manufacturing, including electric vehicles, is seen as key to boosting growth. Thailand, a major exporter of electronics, is a net energy importer and is investing in renewable energy to support resource-intensive industries. However, the country's public debt-to-GDP ratio is nearing the official ceiling of 70%.
The Bank of Thailand predicts the economy's potential growth rate will be around 2.7% over the next four years, slower than the 3% growth target set by Finance Minister Ekniti. Despite facing challenges such as household debt, declining tourism, and a trade deal with Washington, the Thai economy has shown resilience.
The IMF has revised Thailand's outlook to "stable" from "negative" following the country's improved policy predictability and a more stable political environment following the general elections in February 2026. As Thailand navigates a fragmented global economy, Finance Minister Ekniti is promoting the country as a neutral and secure investment destination.
Written by urgent.news from Bangkok Post Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Nearly 30 years after IMF rescue, Thailand faces new economic test bangkokpost.com
- Nearly 30 years after IMF rescue, Thailand faces new economic test japantimes.co.jp
