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Thai Economy May Be Vulnerable To Another Shock Due To High Foreign Holdings In The Country

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Sixteen years after the Asian financial crisis of 1997, Thailand shows every sign of having recovered, but the country may not be out of the woods yet and its economy may be vulnerable to another shock.

The crisis of 1997 started when the Thai baht collapsed after the government was forced to float the currency due to a shortage of foreign currency to support its fixed exchange rate. As the crisis spread, Thailand and other Asian countries experienced slumping currencies, devalued stock markets and other asset prices, and a precipitous rise in private debt.

Now, 16 years after that crisis and having experienced years of robust growth along with its Southeast Asian neighbors, Thailand seems to be doing well.

Many are optimistic about the country’s financial future, believing the way forward is for Thailand to gain prosperity from expanding trade and exports, from rising disposable income, and from the relative strength of the country’s competitiveness as one of the financial hubs of the region, according to The Nation, a Thai newspaper.

From: http://www.ibtimes.com/thai-economy-may-be-vulnerable-another-shock-due-high-foreign-holdings-country-1331541#

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