Impact Expected to Carry into Q1 of Next Year
PUBLISHED: 4 Oct 2024 at 05:12
Thailand’s government has initiated the first phase of a cash handout scheme totaling 145 billion baht, aimed at stimulating economic growth this year, with GDP expected to rise by 0.3 percentage points. Deputy Finance Minister Paopoom Rojanasakul confirmed that the benefits of this program will likely extend into the first quarter of next year.
To sustain economic growth, the government is preparing further stimulus measures that are intended to boost spending as the year comes to a close.
Mr. Paopoom has indicated that GDP growth this year is projected at 2.6-2.7%, excluding the impact of the stimulus scheme.
The 10,000-baht cash distribution to recipients is anticipated to generate an additional 0.3 percentage points in economic growth, with effects extending into early next year, he noted.
“The economy could surpass the initial growth forecast of 2.7% for this year,” Mr. Paopoom stated.
Looking ahead to next year’s economic outlook, he highlighted the positive momentum expected from this year’s stimulus efforts.
In addition to the one-time cash distribution, the government has introduced various measures aimed at supporting low-income earners, which are expected to have lasting positive effects into the first quarter of the upcoming year.
Further stimulus initiatives may be unveiled during the first quarter, according to Mr. Paopoom.
For long-term growth, he emphasized the need to attract more investors, enhance infrastructure, and provide loans for small businesses to achieve a GDP growth target of 3%.
Year-end stimulus programs are anticipated, including potential tax measures and spending incentives, although Mr. Paopoom clarified that these will not replicate the previous “half-half” co-payment initiative.
He mentioned that purchase-based tax deductions are among the proposals under consideration.
“Announcing measures prematurely may hinder spending in December, but the government is ready to implement them before year-end,” Mr. Paopoom added.
