Balance has replaced growth, even sustainable growth, as the keyword for Thailand's economy, Kittiratt Na-Ranong, Thailand's deputy prime minister in charge of economy, said at the World Economic Forum on East Asia in Bangkok on Thursday.
"Twenty years ago, if you ask me what the single most desirable word is, I would say 'growth'. After a few years of unstable growth, it would be 'sustainable growth'. If asked the same question today, I would say it's 'balance'," Kittiratt said.
With a few good years of export, Thailand is now suffering from surplus another side of imbalance. "The stronger Thai baht has made it difficult for exporters. Liquidity is pouring into our economy," he said.
To reduce reliance on export, Thailand is trying to boost domestic consumption by raising minimum daily wages from 215 to 300 baht (10 U.S. dollars).The raise took effect in April.
"East Asia has been for too long trying to concentrate on export-led growth and forgetting to improve our own economies. By improving the productivity, efficiency and purchasing power within our own economies, we can serve ourselves better achieve easier growth and help balance the world economy," he said.
Kittiratt said boosting domestic consumption in Thailand is not just for growth within the country, but also to help other East Asia countries and even European countries to find balance.
"Imbalance is the root of problems at the regional and global level. The problem in Europe is also imbalance. It's our job to try to improve ourselves to help them too, by enhancing our purchase power to reduce trade deficit of the west," he said.
Thailand is not the only country that is trying to find a new balance between world market to home market, as international trade slows with global economy turmoil, said Eswar Prasad, professor of Cornell University.
"The key to rebalancing is domestic policies. Each country has to develop domestic market to make sure the economy is buffered against external shocks," Prasad said.
Curbing corruption and inequality are essential to domestic rebalancing, he added. "The support for broad reform will be eroded when people feel only the privileged are benefited."