Economic hardship of people very great: PM
Described: 20 Feb 2025 at 04: 39
The , Prime Minister Paetongtarn Shinawatra is urging,
( BoT ) to lower interest rates, saying a reduction will help ease the public’s financial burden.
Ms. Paetongtarn stated at the” Matichon Leadership Forum 2025 Trust Thailand” on Wednesday that the Thai economy started to show signs of recovery toward the end of last year, with growth reaching 2.5 %, slightly higher than the 2 % target set for 2023.
The treatment, she said, was driven by the president’s monetary stimulus measures that resulted in increased customer investing and a fall in tourist visitors following the expansion of the region’s visa-free policy.
The government is expecting the economy to grow by 3 % this year, spurred by higher private-sector investment, more consumer spending and the launch of several state investment projects.
But, Ms. Paetongtarn acknowledged that due to low investment in the industrial sector and liquidity issues brought on by high interest rates, the nation’s economic growth rate is low compared to other nations in the area.
She claimed that commercial banks are cautious when offering loans, which has had a negative impact on small and medium-sized businesses ( SMEs ), which account for about 75 % of the nation’s businesses.
” The lack of access to funding is restricting our ability to invest and grow]Thai SMEs], which is starting to affect different business”, she said.
Commercial banks need to make sure there is a sufficient source of revenue, and the BoT should think about cutting interest rates, which will also aid some households who are struggling with daily expenses.
She said a rate cut didn’t have an negative impact on the economy, as the country’s inflation rate is low.
At the conference, she highlighted a number of Pheu Thai activities which are meant to provide debt relief to businesses and homeowners, including the” Khun Su, Rao Chuay” structure, which was designed to help those struggling with loan, car, and SME mortgage payments.
The PM said several debt reduction plans rolled out by her state, as well as the previous leadership under Srettha Thavisin, have helped 830, 000 consumers clear their debt.
The government has instructed the Finance Ministry to hold discussions with the BoT to increase access to funding for borrowers and is assisting another 260, 000 people in clearing their debts accounts, she continued.
According to Ms Paetongtarn, the Srettha administration’s efforts to attract foreign investment have led to a 35 % increase in investment, totalling about 1.14 trillion baht, or 5 % of GDP.
She claimed that her government is working to re-invest the money in various companies and provide more opportunities.