Thailand has urged the adoption of international cooperation on fiscal policy and tax measures to help safeguard small-sized businesses and low-income people from looming stagflation.
Finance Minister Arkhom Termpittayapaisith said international fiscal and tax measures were needed to cope with the inflation crisis that could develop into stagflation, said Pornchai Thiraveja, director-general of the Fiscal Policy Office.
Mr Arkhom was speaking at the International Monetary Fund (IMF) and World Bank annual meetings on Thursday and Friday in Washington, said Mr Pornchai, in his capacity as spokesman for finance.
The world economic situation, the new international financial architecture, financial regulations, infrastructure investment, sustainable finance and international taxes were among the key topics discussed at the annual meetings, which wrapped up yesterday, said the spokesman.
High consumer product and energy prices are now heightening the risk of the world's economic situation turning from an inflation crisis to stagflation, Mr Arkhom told the meetings.
Stagflation is a situation in which the inflation rate is high or increasing as the economic growth rate slows, and unemployment remains steadily high.
Mr Arkhom encouraged international governments to join hands in deploying fiscal and tax measures to help cushion the impact, especially on the small enterprises and low-income people. As agreed in a past meeting of the G20, Thailand stresses the development of infrastructure, seen as the key to improving people's quality of life and the country's competitive ability, said Mr Arkhom.
Infrastructure development in Thailand covers not only the transport system but also public utilities and the digital infrastructure. Thailand has been finding more sources of funds to supply these development projects, including new government and corporate bonds, he said.
