How did the Asian Financial Crisis affect Thailand?

How did the Asian Financial Crisis affect Thailand?

Nationwide poverty fell from 21.3 to 11.3 percent. Thailand’s Gini coefficient, a measure of income inequality, fell from .525 in 2000 to .499 in 2004 (it had risen from 1996 to 2000) versus 1997 Asian financial crisis. By 2001, Thailand’s economy had recovered.

What caused the 1997 financial crisis in Thailand?

The Asian Financial Crisis is a crisis caused by the collapse of the currency exchange rate and hot money bubble. On July 2, 1997, the Thai government ran out of foreign currency. No longer able to support its exchange rate, the government was forced to float the Thai baht, which was pegged to the U.S. dollar before.

How did Thailand recover from the financial crisis 1997?

It realigned the banking sector by first closing down 56 financial firms, and then urged commercial banks to dispose of their nonperforming-loans (NPLs) and increase their capital bases. For small- to medium-sized banks, it promoted nationalization and mergers with foreign banks.

What triggered Asian Financial Crisis?

The Asian financial crisis was triggered by Japanese commercial banks who reduced their exposure to Asia in response to emerging troubles in Thailand and South Korea. Japanese banks had been severely weakened by the collapse of the real estate and stock market bubble in Japan in 1990.

What are the external factors that contribute to the outbreak of the financial crisis in 1997?

According to this view, fundamental imbalances triggered the currency and financial crisis in 1997 even as after the crisis started, market overreaction and herding caused the plunge in exchange rates, assets prices, and economic activity to be more severe than warranted by the initial weak economic and financial …

What was the 1997 Asian financial crisis?

The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

What was the 1997 Asian crisis?

The countries most affected by the 1997 Asian financial crisis. The Asian financial crisis was a period of financial crisis that gripped much of East Asia beginning in July 1997 and raised fears of a worldwide economic meltdown due to financial contagion.

What is Southeast Asian financial crisis?

The Asian financial crisis of 1997-1998. The Asian financial crisis crept into Southeast Asia on only the second day of Hong Kong’s return to China in 1997, and the city was soon preyed upon as an ATM machine by George Soros, a global financier.

What is Asian crisis?

What is the ‘Asian Financial Crisis’. The Asian financial crisis, also called the “Asian Contagion,” was a sequence of currency devaluations and other events that began in the summer of 1997 and spread through many Asian markets.