However, Pichai claims that the GDP destination is still being worked out.
Thailand’s business will likely experience “turbulence” for six weeks, during which time the government may take proactive steps to help mitigate any adverse effects, according to Deputy Prime Minister Pichai Chunhavajira’s statement from yesterday.
Mr. Pichai, who is also the finance minister, attributed the anticipated volatility primarily to a tumultuous world economic environment.
According to him,” There has been a significant international shift, triggered by US President Donald Trump’s tax policy, which has had an impact on all economy.”
We do not deny that the universe will ultimately revert to previous expectations and coexist in the new circumstances. However, we anticipate a temporary financial downturn in the near future, which also calls for further analysis.
Thailand will try to adjust its trade balance with the US by importing more goods, mainly agricultural products like maize and seafood for processing into animal feed, according to Mr. Pichai, who is already in the trade surplus.
If their prices remain aggressive, Thailand will even increase the volume of its exports of US strength products, he said.
The government plans to encourage more foreign investments in Thailand, with a emphasis on high-tech businesses that incorporate Thai supply chains, he said. He said this will mean that the state will be more discerning when it comes to selecting overseas investments.
Federal funding will be used to address structural issues, including those relating to storm and drought management, he said.
A suggested entertainment complex program, which legalized gambling will be allowed to be a part of, is still in the works, he said, as it is hoped to increase national income.
According to Mr. Pichai,” Thailand’s GDP can grow by over 3 % this year if there are no significant disruptions,” adding that despite the global situation, Thailand is still on the right track to meet its initial economic growth target.
Initial expectations for first-quarter GDP growth were to be higher than 2.5 %, with some estimates extending to 3 %. However, he said that a global economic slowdown may be more apparent by the third quarter given the impact of the US tariff policy, if the uncertainty persists.
Thailand nowadays requires disaster plans that could be put into action right away, he said.
According to Mr. Pichai, the government’s planned investments must be properly prioritized, and just should be allowed to be made urgently given the anticipated instability.
A proposed development of the” Khun Su, Rao Chuay” household debt reduction program, which will be presented to the government in June or July, is one of the other determined actions, he said. The eligible loan level will be raised from 5, 000 ringgit to 10, 000 baht in the new phase of the project, where lenders who pay off 10 % of their debt will receive the rest of their debt forgiven by financial institutions.
He said the policy interest rate cut should be used to boost investment after the Bank of Thailand reduced it by 0.2 %.
Meanwhile, the Fiscal Police Office ( FPO ) has downgraded the nation’s GDP growth forecast for 2025 to 2.1 %, citing the economic effects of Mr. Trump’s tariff policies. However, according to FPO director-general Pornchai Thiraveja, Thailand’s GDP could rebound to 2.5 % if the US decides to only impose a 10 % tariff on Thai imports as opposed to the previously announced 36 %.
What the government needs to do is speed the distribution of the 2025 governmental budget, according to Mr. Pornchai, then that Thailand’s financial outlook is hanging in the balance. The government wants to have a disbursement rate of 94.4 % for the fiscal year 2025, with a 101 % target for current expenses and 74.8 % for capital investments, he said.