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˹éÒ 6 |
| Economic Performance |
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The Thai economy faced severe difficulties in 1997, mainly as a result of the bubble economy. From mid-1996, Thailand was confronted with a series of adverse developments, including a sharp slowdown in exports and GDP growth; growing difficulties in the property sector; a sharp fall in the stock market; and some weakening of the fiscal position. On July 2, 1997, the authorities introduced a managed float of the Baht which subsequently depreciated sharply. Recognizing that the economic and financial situation had become precarious, the authorities moved to put together a comprehensive economic package and sought both financial and technical assistance from the International Monetary Fund (IMF). The policy guidelines which Thailand must observe under the IMF programme cover fiscal policy, monetary policy, financial reform, state enterprise reform, social reform, and the legal structure. Under the conditional agreement with the IMF, the Government would reduce expenditures in many areas, but the budget allocation to education and health or social welfare must be maintained. |
| Chart 1.5 Real GDP Growth, 1990-1997 |
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| Source : Bank of Thailand |
