Thai Government to Implement Stimulus Measures for 3% Economic Growth
Deputy Finance Minister Paophum Rojanasakul outlines plans amid World Bank’s lowered growth forecast
Despite the World Bank reducing Thailand’s 2024 economic growth forecast to 2.4%, Deputy Finance Minister Paophum Rojanasakul announced on Wednesday that the Thai government aims to achieve 3% growth through various stimulus measures. The downgrade from the World Bank, which previously forecast 2.8% growth, is attributed to weaker-than-expected exports and public investment.
Paophum emphasized the government’s commitment to addressing the sluggish economy by accelerating investments and monetary injections. Among the planned stimulus measures are tax incentives to boost tourism in second-tier provinces and soft loans for SMEs, which the Finance Ministry will present to the Cabinet next week.
Additionally, the digital wallet scheme, set to launch in the fourth quarter, is expected to have a minor impact this year but will significantly contribute to growth in the first half of next year. Paophum mentioned that further measures to stimulate economic activity will be proposed to the Cabinet shortly.
To support SMEs, the government plans to increase loan guarantees, making it easier for these businesses to access financing. Public-private partnerships for infrastructure development in secondary provinces are also on the agenda to facilitate future tourism.
Paophum highlighted these initiatives during his speech on “Unlocking The Growth Potential of Secondary Cities” at Renaissance Bangkok Ratchaprasong Hotel, where he presented the Thailand Economic Monitor report. He pointed out the economic disparity between main and secondary cities, as indicated by the Spatial Economic Fundamental Index (SEFI).