Thai economy in recession, needs a boost, says deputy finance minister
Thailand’s economy is in a state of recession owing to a high level of household debt, a deputy finance minister said on Monday (Jan 29), reiterating the need for stimulus to jumpstart the economy.
Deputy Finance Minister Julapun Amornvivat said the government was committed to delivering on its signature 500 billion baht ($18.8 billion) handout plan of transferring 10,000 baht to 50 million Thais, and hoped a delay in its rollout would not be long.
The government last week slashed 2024 growth projections for South-east Asia’s second-largest economy to 2.8 per cent from an earlier forecast of 3.2 per cent on weaker exports and lower foreign tourist numbers.
It also lowered the 2023 growth estimate to 1.8 per cent from 2.7 per cent. That compared with growth in 2022 of 2.6 per cent.
“If you ask, now it’s at the dangerous level. It’s a kind of economic recession,” Julapun told reporters.
“This is caused by a situation where the household debt burden is high. People’s debt burden is high, private sector debt burden is high.”
A NEWSLETTER FOR YOU
Asean Business
Business insights centering on South-east Asia's fast-growing economies.
He added: “It’s difficult to drive the economy forward. That’s why we’ve seen economic growth that has always been sluggish.”
Julapun also said Thailand is planning to issue bonds overseas in the next one or two years in dollar, yuan and yen.
He said there would be a sale of government savings bonds worth about 100 billion baht in the 2024 fiscal year, with the first batch in March. REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
South Korea to slap fines on food suppliers for ‘shrinkflation’
Stormy Daniels’ ex-lawyer in the hot seat at Trump trial
New Zealand says ‘seriously concerned’ by China’s increased security actions in Pacific
EU, ISSB agree on minimising overlaps in company climate disclosures
US law firm Mayer Brown to split from Hong Kong partnership
US labour costs rise by most in a year as productivity cools