Interest Rates and Burden of Economics in Thailand

Abstract

This research tries to investigate how interest rates affect economic performance by using indicators of GDP, consumption, investment and interest rates. The World Bank provided secondary data for our study, which has an annual study period from 2000 to 2020. We use vector analysis for estimate data. We found that Investments encourage economic growth, although, in Thailand, domestic consumption does not necessarily encourage economic growth. This is very surprising because it is a different finding. However, interest rates suppress all sectors, both in the market sector, namely consumption, the financial sector, namely investment, and the production sector, namely GDP. GDP itself is an indicator of economic growth. Interest rates are a depressant and a burden on the economy in Thailand so low-interest rates and being managed carefully are the policies we recommend for economic recovery in Thailand.