THE STAR – Thailand’s economy is forecast to achieve a growth rate of 2.8 per cent this year, propelled by increased public consumption and investment following the establishment of a new government. The growth comes in light of persistently feeble export performance amid a global demand slowdown.
Deputy Finance Minister Krisada Chinavicharana emphasised that heightened public investment and spending initiatives will draw in more private sector investments.
Concurrently, strong growth continues to be observed in private consumption and the tourism sector. The 2.8-per-cent growth outlook, however, will not reach the ministry’s earlier forecast of 3.5 per cent this year, he told reporters after telling a business event that the economy might grow as forecast this year.
“But this year the economy will definitely meet the country’s growth target of 2.8 per cent” as predicted by the National and Social Development Council, the state planning agency, he said.
“The engine that is about to start is public consumption and spending after the government formation,” Krisada said.
The new government led by Prime Minister Srettha Thavisin, who is also finance minister, seeks to revive Southeast Asia’s second-largest economy and deliver on key campaign promises.
It is due to deliver its policy statement tomorrow.
Thailand’s 2024 fiscal budget will be brought up for immediate consideration, Krisada said.
The THB3.35 trillion (USD94.2 billion) budget plan was put on hold for the new administration.
The economy should perform well in 2024, helped by a government digital handout policy worth THB560 billion (USD15.8 billion), he said.
The government has funding sources for the scheme without issuing a special borrowing law, Krisada added. Thailand’s economy grew 1.8 per cent in the April-June period on the year and 0.2 per cent on the quarter, sharply slowing from the previous quarter, as weak exports and investments undercut tourism strength. Last year’s growth was 2.6 per cent.
