Thai deputy premier vows to restore grassroots economy

Newly-appointed deputy premier Somkid Jatusripitak on Monday pledged to bolster Thailand's grassroots economy, especially in the agricultural sector.

The former finance minister admitted that the country had been hit by stagflation which, he said, had resulted from world economic recessions and sustained decline in export industry.

However, Somkid assured that he will see to it that grassroots economy nationwide will be strengthened and farmers will have more income and purchasing power.

"We will apply short-term measures to strengthen the rural economy ... We believe the situation will gradually improve," he added.

Thai farmers' purchasing power has declined and their costs of living have increased since their farm goods had secured lowered prices; "We will see to it that the rural economy will be stimulated and strengthened," said the deputy premier.

He did not elaborate about the planned short-term measures for the grassroots economy, but said farmers in particular will get " better off" to the extent that they have more money to spend in the face of the current stagflation.

Meanwhile, he said the government has yet to find ways and means to restore investors' confidence in the country which, he said, had apparently plummeted over the last several months.

"The government will fix problems about the reduced confidence on the part of the investors and see to it that they will again have confidence in the country's economic potentials," he said. Endi