Thai Prime Minister Srettha Thavisin stated on Wednesday that he holds the belief that the country is currently facing a economic crisis. He mentioned that the government plans to introduce both stimulus measures and financial assistance to enhance economic growth. Despite his acknowledgment of the economic challenges, he expressed that it’s acceptable if the central bank has a different perspective on the matter.
Following statements made by the central bank governor to Reuters on Tuesday, in which he expressed the view that government stimulus measures would not address the structural challenges affecting Southeast Asia’s second-largest economy, Prime Minister Srettha Thavisin made his comments about the economic crisis on Wednesday.
This week, the government revised down the growth projections for 2024 to 2.8%, down from the initial forecast of 3.2%, citing weaker exports and a decline in foreign tourist arrivals.
Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput, who has faced criticism from Prime Minister Srettha Thavisin for not lowering interest rates despite low inflation, stated that while Thailand’s growth has been slower than anticipated, the economy is not in a state of crisis.
As the finance minister, Srettha has conveyed to the governor that high interest rates are negatively impacting businesses and has urged the BOT to reduce rates, currently standing at a decade-high of 2.5%. In response to the economic challenges, the government has pledged various stimulus measures, including a $14.3-billion handout program targeting 50 million Thais. Srettha emphasized that reducing interest rates falls within the central bank’s jurisdiction, but additional policies, including the implementation of a digital wallet, are in the pipeline.
According to CNBC
By. Pham Thanh Bien
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