Rettha calls for new regular meetings to come up with ideas for reviving the sluggish economy.
PUBLISHED: 22 May 2024 at 21: 37
Prime Minister Srettha Thavisin stated on Wednesday that the market is at risk of a recession given the slow GDP growth, higher home debts, and burgeoning bad debts.
Mr. Srettha, who is currently traveling in Japan, announced he would lead an urgent meeting of the economy’s officials and other related bodies on Monday to come up with fresh ideas to revitalize the business.
He said the particular sessions will be held weekly for the near future, stressing the need to generate fresh ideas.
The National Economic and Social Development Council ( NESDC ) announced the move after the first three months of its report of economic growth of only 1.5 % year over year.
The state planning agency now anticipates a year-long increase in gross domestic product ( GDP ) growth of between 2 % and 3 %, which is slightly below its previous projection of 2.2 % to 3.2 %. Last year’s growth was 1.9 %.
The NESDC said the upgrade is a result of higher amounts of physical danger, particularly trade protectionionism, growing political conflicts, and increased volatility in the world economy.
Thailand’s growth in the first quarter was slower than that of six other Association of Southeast Asian Nations ( Asean ) members. The Philippines and Vietnam led the pack, at 5.7 % each, followed by Indonesia ( 5.1 % ), Malaysia ( 4.2 % ) and Singapore ( 2.7 % ), according to NESDC figures.
” GDP grew by just 1.5 %. Without the support and tourism industries as pads, we would now be at risk of a crisis”, said Mr Srettha. ” There is also credit card debt, bad debt and house debt]that needs to be addressed ]”.
When asked if the government was thinking about taking any quick-term measures to boost the economy, he replied,” That’s why the meeting of financial officials will be held. However, the meeting wo n’t present any unexpected project at this time.
” From now on, for meetings may be held every year. I want to hear ideas from anyone, including those working in foreign trade, agriculture, and law.
The discussions had been held regularly on Mondays, according to government official Chai Wacharonke.
According to the official, the president’s 500 billion-baht digital budget handout is one of the crucial steps to quickening the economy.
On Tuesday, the government approved a plan to increase the resources for the 2024 fiscal year, for 3.48 trillion ringgit, to help fund the plan.
Finance Minister Pichai Chunhavajira stated that the extra amount would be decided this month, but it should not reach the 122 billion ringgit that the Budget Bureau had previously indicated, which may raise the funds for 2024 to 3. 6 trillion baht.