Some industrialists may even put off plans to bring in productivity-boosting machinery. The devaluation may be a death blow to those operating on thin margins. More significant moves are needed to maintain a momentum for recovery. One would be a cut in the high interest rates that have hobbled the country's financial sector. But that is unlikely in the near future.
Some rough times lie ahead.
Chavalit can expect plenty of flak if rising prices eat into the real value of pay packets and savings. Inevitably, there will be protests from laid-off workers and failing businesses. Tough, unpopular decisions will have to be made about the property glut and other dubious ventures. Above all, though, the prime minister needs to hammer out, then articulate, a coherent policy with which to rally the nation. Chief among the regional players in the baht drama are the central banks involved earlier this year in currency-support accords with Thailand.