Former Unctad chief makes case for debt spending
60% ratio ceiling may restrain stimulus support for recovery
Thailand should implement fiscal stimulus to overcome the Covid-19 crisis, without being concerned about the possibility of the public debt-to-GDP ratio overshooting the 60% ceiling, says former UN Conference on Trade and Development secretary-general Supachai Panitchpakdi.
Most countries around the world, both developed and developing economies, have incurred higher public debt-to-GDP ratios as a result of aggressive fiscal stimulus to mitigate the adverse effects from the pandemic crisis.
“We are in an economic survival mode, so public borrowing and higher public debt are normal. The…
