Part 4/9:
The aftermath of the crisis was characterized by an astounding economic collapse, manifesting as an 11% contraction in the Thai economy. By 2001, the Thai stock market had plummeted to an alarming 88% decline from its peak in January 1997. Servais underscores how slow recoveries from such downturns can be, mentioning the persistent low performance of the Thai stock market even two decades later. Additionally, he reflects on the ripple effect of the crisis on foreign investment and the banking sector, which struggled under the weight of non-performing loans.
Lessons in Resilience and Reality
As the dust settled, Servais distilled several lessons from this challenging period: