Asian Tiger Running Slow?

Economist theorize how the "Asian Tiger" brought so many South East Asian countries out of the major deficit, and they are awaiting the answer. Some believe that the Asian Tiger was recovering through an extensive developments, which means more capital and more labor to create growth (eventually running out of steam).

The Prime Minister of Thailand admits that the country will see a trade deficit this year since the 1997 crisis. The deficit is due to the high global oil prices and increased shipment of capital goods. In Februrary, there was an estimated $525 million deficit, with imports of 8.27 billion and exports of $7.74 billion. The finance minister said that it was due to higher imports of capital goods, machinery, steel and oil. The import of steel rose to 80% from January. With the economic expansion, higher imports are just unavoidable. However, in the service department, Thailand has a surplus of approximately $700 million.

Even if the Asian Tiger is slowing down, Thailand will not be seen in a rut anytime soon.