Bangkok: The central bank chief said on Thursday ( Jan 30 ) that Thailand’s economy may experience a weaker-than-expected fourth quarter in which consumption slowed, despite a government cash handout intended to accelerate sluggish growth, and that the country’s economy may experience a decline of under 2.9 percent this year.
The Bank of Thailand had previously predicted that the country’s economy would grow by 2.9 % this year, which was lower than the finance ministry’s forecast of 3 % growth.
Governor Sethaput Suthiwartnarueput told Reuters in an interview that there is” some upside risk for that figure.”  ,
He said the business may have expanded near to 2.7 per cent in 2024, with the final-quarter rate weaker than projection, at northeast of 3 per cent.
” The influence of the freebies and the signal was less than we had expected”, he said. ” The pamphlets that went out occasionally were used to pay down debts and whatnot, so you didn’t see that language into use”.
Sethaput’s notes were his first this year on the financial growth perspective and the effectiveness of the president’s touted US$ 14 billion handout policy.
Thailand’s government is set to move out the next stage of its unique “digital budget” programme in April, aiming to lead “very large” growth in the first quarter. The program, the ruling party’s primary election campaign plan, was launched final September after repeated difficulties.
The central bank remains concerned about the volatility of the baht, according to Sethaput, but the BOT’s monetary policy stance remains broadly neutral and inflation will increase to 1.1 per cent this year, remaining within the target range of 1 % to 3 %.
” We feel that at present, when you take it all together, the current coverage level is ideal for striking the right balance for those points”, he said.
” That said, if issues change, straight, we’re prepared to change”.
Following a surprise price cut in October, the central bank cut its key interest rate to 2.25 percent next month. On February 26, it did next overview policy.  ,  ,  ,  ,  ,  ,  ,  ,
TRUMP UNCERTAINTY, CRYPTO
The US President Donald Trump’s subsequent expression had created more confusion, but it was still too early to say what kind of effect it would have on Thailand, the government said.  ,
” It’s very uncertain, and it’s very, very first time”, said Sethaput, who is set to complete a five-year expression in September.  ,
 , Southeast Asia’s second-largest market is seeking to gain from a revamping of supply stores triggered by taxes threatened by the new US presidency.  ,
Sethaput also highlighted the central bank’s reluctance to use bitcoin as an alternative payment method, despite the Thai government’s plan for a platform on Phuket, a tourist island island.
He criticized the lack of stability of cryptocurrencies, the lack of robust main technologies, and the potential fragmentation of the payment system caused by Thailand’s already functioning Promptpay digital payment system.
” I understand, afterwards, where the incentive is coming from. Even in the US we see, you know, a force for this”, he said.  ,
” The benefits of the use case have to be very, very clear because they are downside risk to moving to that” . ,  ,