Bangkok’s chief of staff, the prime minister’s office, stated on Monday ( Mar 4 ) that Thailand’s economy is in a” critical situation,” stressing the need for stimulus measures to address household debt, boost tourism, and draw in foreign investment.
Statistics indicate that we are not in good shape, according to Prommin Lertsuridej to investigators.
His remarks come as Srettha Thavisin’s state presses to resurrect Southeast Asia’s second-largest market, which has struggled with weak imports and a gradual recovery from the pandemic compared to local contemporaries.
The economy quickly decreased in the third quarter of 2023, and politicians have downgraded the outlook for this year’s growth, putting pressure on the central banks to comply with the prime minister’s near-daily requirements for an interest rate cut.
Srettha has stated goals to make Thailand a regional hub for various industries, including electric vehicles ( EVs ), aviation, finance, and the digital economy. He has also urged legislators to promote Thailand as a gateway for food, healthcare, and hospitality.
According to Prominn,” We are doing everything we can,” referring to policies to address household debts, which accounts for 91 % of the gross domestic product, as well as methods like visa-free travel.
He added that Thailand needs to “improve nearly every kind of legal construction” in order to facilitate business. He added that Tesla and Alphabet Inc. had both expressed interest in investing in the nation.
Critics have urged caution against the government’s string of measures, particularly a US$ 14 billion “digital wallet” handout scheme, because it may not be financially feasible and may fuel inflation.
Prommin claimed that the government’s 3.48 trillion baht ( US$ 97.29 billion ) budget should be approved and ready to spend by the following month.
Due to a state formation pause from last year, the funds has been on hold since October.