in the region. and, even as export fell by about 7 per cent, output growth remained positive in every quarter. in terms of macroeconomic stability, we saw an improvement both on the domestic and external fronts. in fact, thailand external position strengthened significantly over 2001. the current account registered a large surplus and external debt continued to fall sharply in 2001. our reserve position remains strong. i am convinced that a flexible mix between monetary and fiscal policies, plus the diversified structure of production and exports, did allow the economy to avoid contraction and build on greater external stability. with the improved environment for growth that i have just noted, i am more comfortable today than last year to talk about an economic recovery. my optimism, however, remains guarded. because on this road to recovery, there are still many risks. such risks, if not managed well, could undermine the sustainability of the recovery process. let me first talk about the macroeconomy and our view for 2002. then i will describe the challenges ahead as well as our thoughts on how to manage them. first, the economic recovery. what do the recent economic numbers tell us? in january, the economy showed signs of continued expansion despite the sluggish global conditions, thanks largely to the momentum in domestic demand. a number of indicators suggested that the economic conditions had improved somewhat from the recent months. for instance, – consumption and investment continued to improve in january. in particular, the private investment index ( pii ) continued to increase. a significant expansion was seen in construction, following the spur in housing demand and construction activities. – it looks like this good news on the domestic demand front warrants a significant increase in the january business sentiment index ( bsi ) and the index looking 3 months ahead. – export quantities continued to improve with the year - on - year growth rate in a high positive. this represents both the pick - up in our trading partners'purchasing power and our staying ability to compete. another factor that continued to firm up the recovery process came from the fiscal front. – during the first four months of fiscal year 2002, the budget disbursement rate accelerated compared to same period last year. this front - loaded fiscal stance will surely contribute to a sooner recovery. i must note here, however, that the jury is still out on what these early signs may portend. i believe the impassioned judgment on the speed of the recovery must await more data. ladies and gentlemen, it is rather unfortunate that while economists

prasarn trairatvorakul : managing emerging market challenges – thailand ’ s and asian perspectives remarks by dr prasarn trairatvorakul, governor of the bank of thailand, at the reception of the 2011 emerging markets central bank governor of the year award for asia, emerging markets, washington dc, 24 september 2011. * * * distinguished ministers and governors, ladies and gentlemen, it is my great honor to receive this prestigious award, and i would like to thank the emerging markets for your kind recognition. in fact, such recognition is unexpected as i simply fulfill my obligations as central bank governor. to be awarded for doing your job, i guess the job must be quite difficult or challenging. more importantly, i consider this award a recognition of the dedication of the staff of the bank of thailand, who have worked hard to ensure thailand ’ s sustainable economic and financial stability over the years. as the bank of thailand enters its seventieth anniversary next year, our institution is faced with a great challenge to maintain price stability while sustaining growth in the midst of heightened global economic and financial risks. we have no luxury of taking a wait - and - see approach but to continue our best efforts to better manage the external spillovers on our economy and financial system. with continued volatile global capital movements, central banks in emerging markets need to ensure that our financial institutions and markets remain robust ; that they can safely and efficiently manage foreign capital inflows as well as outflows, without disrupting the real economy. thus, emerging market central banks must be prepared for policy contingencies ahead. at the core, monetary policy must continue to safeguard price stability, while taking into account concerns about economic growth and financial stability. the bank of thailand, on our part, will do our best to steer the thai economy and financial system through the global turbulences, to ensure the continued well - being of the thai people in years ahead. thank you. bis central bankers ’ speeches