Both are crucial for restoring international and domestic confidence in the Thai economy and renewing needed investment flows. Confidence can only be restored if the government delivers in the implementation of a credible program. Foreign reserves have grown, building further confidence in the Thai currency. Export volumes are beginning to react positively to the real depreciation of the baht, especially in the agricultural sector. Exports are increasingly diversified towards the more robust US and European markets.
Inflation is contained.
The Bank of Thailand is being strengthened. New management is in place and far reaching reforms to revamp this institution have been initiated. In the coming months, the focus of efforts will be to maintain these gains in stability, while gradually lowering interest rates to stimulate renewed investment in the economy, and implement further reforms at the Bank of Thailand. The second area of importance is stimulating demand . In order for Thailand to emerge from the economic crisis that currently faces the countries of Southeast Asia, the importance of efforts to stimulate growth, both on the domestic front by stimulating demand, and externally by promoting exports vigorously, cannot be overstated.