The Bank of Thailand Governor points out that the global economy has entered the age of Geoeconomics, where politics, economics, and security are becoming increasingly interlinked. He reiterates that Thailand must accelerate structural reforms and address SME capital problems, while simultaneously suppressing the underground economy, grey money, and corruption, in order to build sustainable growth and resilient crisis-response capacity.
Mr. Vitai Ratanakorn, Governor of the Bank of Thailand, posted a message sharing his views on the changing global economy, stating: "The world has stepped into the era of Geoeconomics, where economics, politics, and security are becoming ever more interconnected, giving rise to greater polarisation of power — or Fragmentation — until the world has become one of constant volatility, uncertainty, a Shock-prone World.
We therefore need Resilience — to be ready to absorb volatility, adapt, and move forward. But for Resilience to emerge, we must reform the economy. We must Reform — begin addressing long-term structural problems, not merely provide short-term relief. And we must truly 'take action,' not just analyse.
One of the most critical challenges is the problem of inefficient resource allocation — Misallocation of Resources — which we face on at least two fronts:
1. Capital is still not flowing sufficiently to SMEs and businesses with potential. Businesses still find it difficult to access credit, or face excessively high financing costs. 2. The underground economy, grey capital, and corruption cause the country's resources to flow into activities that generate no productivity, leak out of the system, and prevent the government from being able to collect taxes.
If we can solve both dimensions of the resource misallocation problem, capital will flow toward higher-productivity businesses, leading to investment, innovation, and quality growth — which will in turn elevate Productivity, generate Potential Growth, give people higher incomes, and genuinely build Economic Resilience for Thailand."
