ABSTRACT
The magnitude of Thailand’s recent crisis may be gauged roughly by its effect on GDP. After a decade of growth of real GDP in excess of 9 per cent, in 1997 real GDP declined slightly (around 1 per cent) and in 1998 it declined by around 9 per cent. Recovery has been slower than was hoped, but positive though small GDP growth was recorded for the first two quarters of 1999. For calendar 1999 growth should be around 3 per cent. The sustainability of this recovery depends on the success of its reform program, especially that involving the financial sector. This reform program is the focus of the chapter.
