[Bangkok Post] Unemployment on the Rise?

The devaluation of the Thai baht in July has begun to take effect in the 

domestic economy. Economist Daniel Adams comments.


Unemployment is on the rise, with expert forecasts seeing it go from its level of 850,000 a few months ago 

to likely reaching 1,250,000 by the end of 1997 before rising to around 1.5 million in early 1998. 

With a large part of Thailand’s debt being denominated in the USD, the devaluation of the Thai baht has 

led to a bloating of its foreign debt, leading to dipping consumer sentiment and trust in the Thai economy 

falling. Furthermore, there is concern that especially in the field of banking reform, Thailand is lacking; 

with further bankruptcies, closures and job losses all expected in the near future. 

 

In the month of July, car sales have dropped 67% from a year earlier. Middle-class parents are pulling 

children out of foreign universities as fees demarcated in foreign currencies like the Euro or USD inflate 

in cost. Foreign investment has also slowed dramatically, ending the previous huge influxes of the past 

and its loss is likely to hurt for some time, especially for the poorest in the nation. 

 

The IMF is expected to take swift action, and a press release is widely expected to calm such weary 

consumers.





Location: Bangkok, Thailand

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