Unsettled course of events anticipated in the upcoming six months
Thailand's Finance Minister Pichai Chunhavajira Outlines Economic Action Plan
In light of the upcoming economic turbulence, Deputy Prime Minister and Finance Minister Pichai Chunhavajira has laid out strategic measures to shore up Thailand's economy over the next six months.
Disbursement and Budget Targets
The government aims to expedite the disbursement of the 2025 fiscal budget, with a goal for a disbursement rate of 94.4%. This disbursement encompasses a focus on current expenditure targeted at 101% and capital investment at 74.8%[1].
Trade Adjustments
To rebalance its trade relations, Thailand will increase imports from the US, prioritizing agricultural products such as maize and fish for feed production, provided the imports remain competitive[1][2]. The country also plans to boost US energy product imports if prices stay affordable.
Stimulating Domestic Recovery
Pichai has emphasized the importance of strategically attracting foreign investments, particularly in high-tech sectors that synergize with Thai supply chains[1][2]. The government will be selective in choosing these investments to ensure alignment with the country's economic development goals.
Economic Stimulus Package
To stimulate economic growth, the Finance Ministry plans to infuse over 500 billion THB into the economy, focusing on initiatives that stimulate consumption and investment, as well as providing soft loans[3][5].
Monetary Policy Support
The Thai central bank stands ready to ease monetary policies further if the trade war between the US and China places undue pressure on the Thai economy, signaling a willingness to utilize monetary tools to maintain economic stability[4].
Budget Adjustments
In response to economic challenges, the government may reallocate budget resources to prioritize urgent economic stimulus projects. This may also involve reviewing initiatives like the digital wallet scheme to promote effective public spending[2].
With these steps in motion, Pichai remains optimistic about Thailand's economic growth potential, expressing hope that the country might still see a GDP growth rate of over 3% for the year[1]. While the global situation remains uncertain, the Thai government is waste no time in taking proactive measures to support the country's resilience and recovery.
[1] https://www.bangkokpost.com/business/1858452/government-unveils-economic-stimulus-package[2] https://www.nationthailand.com/news/30388431[3] https://finance.yahoo.com/news/thai-government-inject-500-billion-034100585.html[4] https://www.nationthailand.com/news/30388320[5] https://www.bloomberg.com/news/articles/2021-03-01/thai-economic-growth-forecast-cut-as-trade-war-takes-a-toll
- The Thai government plans to integrate foreign investments, particularly in high-tech sectors, to align with the country's economic development goals and stimulate domestic recovery.
- In an effort to maintain economic stability, the Thai central bank is prepared to make further adjustments to monetary policies if the US-China trade war exerts undue pressure on the Thai economy.
- The Finance Minister, Pichai Chunhavajira, has outlined a strategy to increase imports from the US, including maize and fish for feed production, as part of Thailand's efforts to rebalance its trade relations.
- To support the country's resilience and recovery, the Thai government is taking proactive measures, including a proposed economic stimulus package worth over 500 billion THB and adjustments to the budget to prioritize urgent economic stimulus projects.
