Stimulus measures primed as economy falters

[webfact]

Stimulus measures primed as economy falters

By THE NATION

 

 

The Fiscal Policy Office has completed economic stimulus measures and will submit them to the incoming Cabinet as soon as possible, says incoming Deputy Prime Minister Somkid Jatusripitak.

 

The two measures consist of a fiscal package to be implemented by the Finance Ministry and a financial aid package including loans, to be administered by the Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives and the Small and Medium Enterprise Development Bank of Thailand.

 

Somkid said that economic growth in the first quarter had fallen to 2.8 per cent, as reported by the National Economic and Social Development Council. He forecast second-quarter growth of 2.8-2.9 per cent.

 

The new government would continue to push forward the key economic policies of the previous administration, added Somkid, especially measures to woo foreign investment. The priority is to boost state revenue, for which new promising sources would be sought.

 

He dismissed rumours that the government was running short of funds and had plans to raise value-added tax by one per cent to 8 per cent. He said that raising VAT at a time when the economy was slowing would impact people.

 

In a related matter, incoming Agriculture and Cooperatives Minister Chalermchai Sri-on has vowed action to tackle the drought gripping parts of the country. He and three deputy ministers will take office on Thursday.

 

Transport Ministry permanent secretary Chaiwat Thongkamkoonm, meanwhile, said he was preparing details of projects awaiting new minister Saksayam Chidchob’s approval. Most are rail projects aimed at cutting the country’s logistics costs.

 

He will also submit a list of projects awaiting approval from the new Cabinet, including Thai Airways International’s plan to procure new aircraft.

 

Source: https://www.nationthailand.com/business/30373050

 

-- © Copyright The Nation Thailand 2019-07-17

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[jabis]

Oh dear - my head hurts

[nkg]

It's time to cut interest rates, and weaken the baht a little.

[Lungstib]

2 hours ago, webfact said:

Most are rail projects aimed at cutting the country’s logistics costs.

And most of these have suggested ticket prices well above what the average Thai worker can afford. Hell, they cant even get to ride Bangkoks existing below and above ground trains because of the price. What chance they will ever need to spend a weeks money getting to Chiang Mai. Isn't it great when the ruling elite spend tax payers money with hardly a thought about where it came from while they pocket millions on dodgy projects to fill their personal bank accounts.

[geoffbezoz]

Let the slump begin and the Thai baht find its true lower level without interference.

[FarFlungFalang]

People aren't spending enough so they put up taxes so that they spend less,brilliant!

[geoffbezoz]

10 minutes ago, geoffbezoz said:

Let the slump begin and the Thai baht find its true lower level without interference.

Very true but those with obscene amounts of money are not spending it in Thailand, rather in countries outside such as Germany etc

[mok199]

And for my first illusion, I will make the baht even stronger...Somchai the Amazing...

[Cadbury]

3 hours ago, webfact said:

.....financial aid package including loans.....

Loans are always a good way of increasing the already ballooning household debt which stands at 77.6% of GDP. Good one Somkid! .......And that's apart from the rising level of loans on automobiles.

 

"Thai households are among the biggest borrowers in Asia and they are finding it increasingly difficult to keep up with payments".

 

https://www.reuters.com/article/us-thailand-economy-debt/as-debt-levels-rise-more-thais-struggle-to-keep-up-idUSKCN1LF0CQ

 

[tompelli]

Great post Cadbury. In our village the over 60's with little/no income are having a 50K baht loan dangled in front of them. Repayable with zero interest over 7 years. The government are kicking the household debt down the road.

[jerojero]

Tackle the drought. Really? How? Sheesh!

[Isaan sailor]

Instead of tweaking taxes and increasing loans—why not cut interest rates, and swear off the mysterious hot money inflow that BoT so unabashedly covets?

[Jumbo1968]

Strange in another report the strong Baht is not to blame for the decrease in Tourism, do the government departments speak too each other before press releases ?

[Srikcir]

Curious that before the elections Prayut touted all the junta's many economic successes:

• Executive Summary Fourth Year Performance Report of the Government ofGeneral Prayut Chan-o-cha (12 September 2017-12 September 2018) - examples such as restoring household, business, investor and tourist confidence in Thailand; revived the economy through a series of economic stimulus packages with emphasis on alleviating the plight of farmers, low-income earners and SMEs; easing household financial burden; easing transport cost burden. https://www.thaigov.go.th/uploads/document/66/2019/04/pdf/Doc_20190410114945000000.pdf
• PM satisfied with higher palm pricing after gov’t measures - https://news.thaivisa.com/article/36564/pm-prayut-satisfied-with-higher-palm-pricing-after-govt-measures
• PM Prayut happy with rubber price situation - https://news.thaivisa.com/article/35989/pm-prayut-happy-with-rubber-price-situation
• PM expressed satisfaction with rice prices - http://thainews.prd.go.th/en/news/detail/WNECO6111040010032

Now the 'economic' sky is falling - after his election as PM!

[Srikcir]

7 hours ago, webfact said:

Somkid said that economic growth in the first quarter had fallen to 2.8 per cent, as reported by the National Economic and Social Development Council. He forecast second-quarter growth of 2.8-2.9 per cent.

WOW

First two 2019 quarters at below 3% makes it most difficult to reach an annual average over 3%.

• Citibank has just lowered Thailand’s economic growth projection this year from 3.8 to 3.3%
• Citibank just predicted that the global economy this year could grow 2.9% so Thailand is expected to do almost no better.
• The BOT just predicted GDP growth of just 3.3% this year.
• The Joint Standing Committee on Commerce, Industry and Banking recently forecasted GDP growth this year to 2.9%, down from the 3% it estimated earlier this year.     

An annual 2019 GDP of 2.5% is beginning to look optimistic.

[Srikcir]

7 hours ago, webfact said:

He will also submit a list of projects awaiting approval from the new Cabinet, including Thai Airways International’s plan to procure new aircraft.

Better for the Thai government to divest itself of its ownership in Thai Airways while the baht is "hot" and use the proceeds for expansion of Prayut's populist programs. Same might be said of all the government's state-owned enterprises.

[Cadbury]

7 hours ago, webfact said:

Somkid said that economic growth in the first quarter had fallen to 2.8 per cent, as reported by the National Economic and Social Development Council. He forecast second-quarter growth of 2.8-2.9 per cent.

GDP growth seems to be trundling along steadily now for two months at around 2.8%. That effectively means the GDP growth for the next two quarters has to average 4% to reach government yearly prediction of 3.4%. 

How on earth is the average for the first two months of 2.8% suddenly going to jump to an average of 4.0%? for the second two months?

Answer...........They are going to fix the drought problems, lend some people some money and lower logistic costs. 

Shake the head in despair. Is there any hope at all??

[Cadbury]

2 minutes ago, Srikcir said:

Better for the Thai government to divest itself of its ownership in Thai Airways while the baht is "hot" and use the proceeds for expansion of Prayut's populist programs. Same might be said of all the government's state-owned enterprises.

Include the debt ridden State Railways of Thailand (SRT) in that. They have just been hit with a 11.88 billion baht bill (plus interest) for their debacle with Hopewell. That's on top of their 100 billion baht debt and operating losses of about 10 billion baht annually.

Who are the highly paid idiots who run these state owned enterprises? 

[RichardColeman]

8 hours ago, webfact said:

Somkid said that economic growth in the first quarter had fallen to 2.8 per cent, as reported by the National Economic and Social Development Council. He forecast second-quarter growth of 2.8-2.9 per cent.

Maybe i'm pretty stupid but, why would you want to put in stimulus measures if you are running at near 3% growth ? 5% is not bad. Someone's porky pieing it somewhere.

[Skeptic7]

22 hours ago, jerojero said:

Tackle the drought. Really? How? Sheesh!

Thailand The Rain Maker! Didn't ya know? 555 

[davehowden]

I hope this is contagious !

 

https://www.bloomberg.com/news/articles/2019-07-18/bank-of-korea-cuts-key-interest-rate-as-risks-to-economy-grow