BANGKOK, 13 September 2013 The United Nations Conference on Trade and Development (UNCTAD) has suggested developing countries rely less on their exports during the time of world economic slump.
Deputy Executive Director of the International Institute for Trade and Development (ITD) Watcharas Leelawath cited a report presented by UNCTAD as saying those developing countries, including Thailand, should focus more on their domestic consumption and public spending in their countries instead of heavily relying on the export industry. He added that during this time of economic crisis, especially in the US and Europe, exports alone are unlikely to be sufficient to boost any country’s economic growth.
He went on to say that when a country faces economic crisis, one should not issue austerity measures as they will reduce the country’s purchasing power, causing the bad economy to drag on. He also advised that when it comes to an economic crisis, the government should look for possible financial and fiscal measures that can trigger the economy such as investments from the private sector and the government.