This article focuses on what we see and what we don’t see, how politics becomes the central focus of the failing economy although it is the not its underlying cause and how we as consumers play the primary role of economic recovery. When economists do not understand the behavior and temporal role of consumers, they risk prescribing the wrong cure for the new norm in mature economies of slow-growth GDP and fewer jobs.
While countries around the world like the United States and those in the European Union are suffering, Thailand has reported a gross domestic product growth of 18.9% compared to last year. This growth can be attributed to the devastating floods in 2011 which diminished both production and consumption. By comparison, the current investment in rebuilding supports growth.
On Monday, February 18th Thailand’s government reported that the GDP growth for 2012 was 6.4%, with expectations for 4.5 %– 5.5 %growth in 2013. Whether the growth will mainly be in manufacturing or in services (such as medical tourism) is a key question.