"Dr. Kobsak" is concerned about "private consumption-production sector" slowing down Thailand's economic growth.

“Dr. Kobsak” is concerned about “private consumption-production sector” slowing down Thailand’s economic growth, proposing to accelerate the economic restructuring, seizing new opportunities from the new round of investment in ASEAN.

May 20, 2568 Mr. Kobsak Pootrakool Executive Vice President Bangkok Bank (BBL) Post throughpersonal facebook Expressing concern about private consumption and industrial production, both of which could put pressure on Thailand's future economic growth.

Stating that from the GDP data announcement of the National Economic and Social Development Board (NESDB) or NESDB yesterday, there are 2 figures to watch, which will put pressure on the Thai economy in the next several years, as follows:

1. Private consumption expanded by only +2.6%. This is concerning because private consumption normally accounts for about 55% of the economy and is a key driver of the Thai economy. This figure should have expanded by 5-6%, but in the last 4 quarters, it has expanded by only about 3%.

“Whether it will be lively or not depends on whether people spend or not. This figure should have expanded by 5-6%, but in the last 4 quarters, it only expanded by about 3%. Part of it is because the Thai economy is not growing very well, and another part is because we are in a lot of debt. We have high household debt and more bad debt.” Mr. Kobsak stated

2. Industrial production This sector is the country's main income-generating sector. The latest figure is about 28% of GDP. During the period of good expansion, this sector will be an important driving force that will help push the Thai economy. During 2543-2550, it expanded by 9.5%, during 2553-2561, it expanded by 4.1%, but in the last 5 quarters, it expanded by an average of only 0.5%.

“The last 5 quarters have expanded by an average of only 0.5%. The engine is stalling. Part of the reason is that Thai industries are becoming obsolete. Factories are closing or reducing production capacity, especially in the automotive sector, which is undergoing a major transformation. If we want to see the Thai economy bustling again, this is an important issue that we must solve. Solve household debt problems and create or replace Thai industrial sectors that will generate new income for the country to replace the closure of traditional factories,” said Mr. Kobsak.

Mr. Kobsak said that if the problem cannot be solved, it will be difficult for the Thai economy to grow as we hope, and it will be overtaken or left behind by neighbors.

“Fortunately, a new wave of investment in ASEAN is coming. Many countries are pouring in to invest after abandoning us after the Tom Yum Kung crisis. If we get a fair share, in 3-5 years, we will have a new industrial sector that will blossom again, becoming a new engine for the Thai economy for another 15-20 years,” said Mr. Kobsak.

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