The Nation (2 November 2007)
World Bank issues stern warning
World Bank expert Kirida Bhaopichitr warns Thailand risks losing its edge Thailand needs to speed up the drive to make its industries more competitive or it may lose out as an export, investment and manufacturing hub to other Asian countries, the economist said yesterday. Country economist Kirida said Thailand would record 4.3-per-cent economic growth this year, the lowest in Asia. The World Bank's forecasts for next year, to be announced later this month, will show Thailand's gross domestic product expanding 4.6 per cent next year. "Despite the 4.6-per-cent expansion - compared with 8 per cent in Vietnam and 10 per cent in China - Thailand could lose out through lack of competitiveness if it does not make adjustments," she told a seminar hosted by the Stock Exchange of Thailand. Kirida's warning came amid concerns that prolonged political uncertainty and unclear business laws could drive away investment next year. The Kingdom's key export markets could suffer from fallout from the US sub-prime lending crisis, while new export markets could show a lower-than-expected growth rate. The World Economic Forum's competitiveness rankings show Thailand's position remains unchanged this year in 28th place. Singapore and Japan, which rank seventh and eighth, respectively, in the forum's Global Competitiveness Report 2007-2008, lead the Asian region. Seven other Asia-Pacific countries and territories are among the top 30 in the Global Competitiveness Index (GCI) rankings, with South Korea, Hong Kong, China, and India continuing to lead the way among large developing economies. "The Asian region encompasses the entire gamut in our rankings, from highly competitive countries to the most challenged, drawing an extremely heterogeneous picture with respect to the levels of growth and development achieved in the region," said Fiona Paua, head of the World Economic Forum's Strategic Insight teams. "Nine Asia-Pacific countries are among the top 30 in the GCI rankings, led by Singapore (7), Japan (8), South Korea (11) and Hong Kong (12), while Mongolia, Bangladesh, Cambodia, Nepal and Timor-Leste are all at the very bottom of the rankings." The rankings are calculated from both publicly available data and an annual executive-opinion survey conducted by the World Economic Forum together with its network of partner research institutes and business organisations in the countries covered by the report. This year, more than 11,000 business leaders were polled in a record 131 countries. The survey is designed to reflect a broad range of factors affecting an economy's business climate, and the resulting report includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform.
World Bank issues stern warning
World Bank expert Kirida Bhaopichitr warns Thailand risks losing its edge Thailand needs to speed up the drive to make its industries more competitive or it may lose out as an export, investment and manufacturing hub to other Asian countries, the economist said yesterday. Country economist Kirida said Thailand would record 4.3-per-cent economic growth this year, the lowest in Asia. The World Bank's forecasts for next year, to be announced later this month, will show Thailand's gross domestic product expanding 4.6 per cent next year. "Despite the 4.6-per-cent expansion - compared with 8 per cent in Vietnam and 10 per cent in China - Thailand could lose out through lack of competitiveness if it does not make adjustments," she told a seminar hosted by the Stock Exchange of Thailand. Kirida's warning came amid concerns that prolonged political uncertainty and unclear business laws could drive away investment next year. The Kingdom's key export markets could suffer from fallout from the US sub-prime lending crisis, while new export markets could show a lower-than-expected growth rate. The World Economic Forum's competitiveness rankings show Thailand's position remains unchanged this year in 28th place. Singapore and Japan, which rank seventh and eighth, respectively, in the forum's Global Competitiveness Report 2007-2008, lead the Asian region. Seven other Asia-Pacific countries and territories are among the top 30 in the Global Competitiveness Index (GCI) rankings, with South Korea, Hong Kong, China, and India continuing to lead the way among large developing economies. "The Asian region encompasses the entire gamut in our rankings, from highly competitive countries to the most challenged, drawing an extremely heterogeneous picture with respect to the levels of growth and development achieved in the region," said Fiona Paua, head of the World Economic Forum's Strategic Insight teams. "Nine Asia-Pacific countries are among the top 30 in the GCI rankings, led by Singapore (7), Japan (8), South Korea (11) and Hong Kong (12), while Mongolia, Bangladesh, Cambodia, Nepal and Timor-Leste are all at the very bottom of the rankings." The rankings are calculated from both publicly available data and an annual executive-opinion survey conducted by the World Economic Forum together with its network of partner research institutes and business organisations in the countries covered by the report. This year, more than 11,000 business leaders were polled in a record 131 countries. The survey is designed to reflect a broad range of factors affecting an economy's business climate, and the resulting report includes comprehensive listings of the main strengths and weaknesses of countries, making it possible to identify key priorities for policy reform.
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