OPINION

Beware of debt pitfalls from bailout

Oped, Published on 10/04/2020

» By all accounts, the ongoing coronavirus (Covid-19) crisis will bear far-reaching ramifications for Thailand's economy and politics. The Thai economy is projected to contract by around 5% this year, owing to a precipitous collapse in domestic demand, dismal export conditions, and broader supply-chain disruptions amid a sharp global economic downturn. Although currently suppressed by the government of Prime Minister Prayut Chan-o-cha and its virus-handling measures, Thailand's simmering political tensions are likely to resurface when a new normal emerges. Under these circumstances, the government's ability to stay clear of hazards and pitfalls in its recently announced 1.9-trillion-baht economic rescue package will be critical in keeping the country together.