During this period,global economic growth and trade slowed down (as a result of the cries in the 1970s and 1980s),trade barrier increased,real interest rates rose,and commodity prices fell. Thailand's economic growth averaged about 5 percent per year Behind this rose of growth were many serious economic problems faced by Thailand .For example ,the current account deficit was persisting at the unsustainable level of 5 percent of GDP,while the investment-saving gap had reached similar magnitude-saving declined from 20-22 percent of GPD in the late 1970s to about 16-17 percent of GDP in 1985 A stan-by loan of US$ 500 milion had to be borrowed from IMF in mid-1985. The external debt rose to US$ 12 billion was long-term debt. The debt-service ratio increased 17 percent in 1980 to about 26 percent in 1985. The situation was made more difficult by the goverment's budget deficit of more than 5 percent of GDP over the five-year period