Patience is needed with regards to economic recovery. Politically, there are of
course pressures for a rapid recovery. However, this can only come about through further
massive public spending which will impose high future costs. One must accept that a
sustained recovery will take time. Debt restructuring without extensive recourse to
foreclosures and bankruptcies is crucial, and this takes time. Similarly, re-capitalisation and
restructuring of the financial sector will also take time. It is expected to take up to 2005
before Thailand's real per capita GDP can return back to the pre-crisis level of 1996 (See
Figure 1). Even if this were the case, the average real per capital GDP growth between 1985
and 2005 would still be about 4-5% per annum. This should be regarded as satisfactory.
Very high rates of pre-crisis growth have proven to be part of the bubble that finally burst.
Post-crisis growth in real per capita GDP of around 5% per annum should prove more
sustainable.