After two years of market stress and decline in economic activities, we can now cautiously look forward to a return to growth. Looking back, the last two years have also been an important testing time for Thailand as the impact from the global financial crisis has been large and quite unprecedented. As it turns out, the economy has been able to weather the impact of the global crisis quite adequately. This is to say, while the decline in output was unavoidable, economic and financial stability was maintained, the banking sector remained resilient, and the economy was able to adjust to the impact of the turmoil in an orderly manner, with output growth now recovering. In my view, these things were of no accidents. Instead, they manifest a number of inherent qualities embedded in the Thai economic system that have contributed to the relative resilience of the economy. Such qualities include: first, a strong and resilient banking sector resulted from good risk management practices by financial institutions and careful supervision by financial regulators at home; second, a disciplined conduct of macroeconomic policy that emphasizes prudent fiscal and monetary frameworks with a clear focus on maintaining growth with price and financial stabilities; and third, the promotion of economic flexibility as a mechanism for the economy and the private sector to adjust to macroeconomic shocks. To me, these qualities are of no accidents.
Ladies and Gentlemen, To conclude, I wish to remind you that the present situation calls for the need to greater international cooperation, which requires concerted efforts by international organizations, regional cooperation and national governments, in combating the global financial crisis. Regional cooperation must be coherent with national policy and work hand-in-hand with international cooperation. The impact of crisis today and the effect of the unwinding of measures taken would not be a zero-sum game, and all players could potentially lose. Thus, going forward, finding the right balance and creating ties between these three, namely international, regional and national interests, will be an important task for national authorities. Thank you. BIS Review 163/2008  3