BoT Governor: GDP not sole indicator of economic well-being

BANGKOK, 1 August 2012 – Bank of Thailand (BoT) Governor Prasarn Trairatvorakul has remarked that the GDP is not the sole indicator of economic strength, citing other factors, such as the GDP per capita and the competitiveness of a country, as equally important.

Mr. Prasarn delivered a speech on Wednesday during a seminar on how well Thailand’s GDP reflects the country’s economic progress. He said the GDP was indicative of growth but not economic strength. The central bank governor added that there were other factors, such as economic balance or stability, progressive growth rate suitable for higher competitiveness and the quality of life, to be taken into account when determining the strength.

The governor stated further that other indicators of real economic progress included the GDP per capita and the country’s competitiveness. At present, Thailand ranks 90th and 30th in GDP per capita and competitiveness, according to the Global Competitiveness Report.

Mr. Prasarn said the last factor that could indicate Thailand’s economic strength was the people’s well-being. He said people should benefit from economic growth and the cost of living should not be too high. In addition, they should have equal access to basic infrastructure, otherwise the disparity could result in social and political problems.

(NNT : suwit)

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