World Bank country director Annette Dixon stated that Thailand is still an investment hotspot at a press conference this week.
“Globally and regionally, Thailand remains an attractive investment destination. We won’t expect a lot of business to relocate,” she said, adding that the government should work to support the flood recovery efforts as opposed to populist policies.
The Bank of Thailand has been urged to reduce the policy rate to strengthen the economy in the past. Dixon said that given the high volatility of the world’s economy, Thailand “should be extremely prudent.”
Ekaterina Vostroknutova, a senior economist for East Asia and the Pacific region, explained that developing countries in the sector are currently preoccupied with growth, and have put less focus on inflation, thus ignoring policy rates.
“Central banks in Asia are waiting to see how things unfold,” she said.