Thailand plans more measures to boost consumption amid pandemic

 

FILE PHOTO: A man sleeps on an almost empty beach, which is usually crowed with tourists, following the coronavirus disease (COVID-19) outbreak in Pattaya, Thailand April 26, 2020. REUTERS/Soe Zeya Tun

 

BANGKOK (Reuters) - Thailand is considering introducing new economic measures to boost consumption and help businesses and debtors cope with the impact of the coronavirus outbreak, a deputy prime minister said on Thursday.

 

The government plans to expand a recently announced package to spur domestic tourism, and to help more companies get financial support, Deputy Prime Minister Somkid Jatusripitak told a briefing.

 

"If the business sector has to stop or halt operations, and if there is no demand in the market, it will be difficult," he said, adding that details of the measures could be announced around the middle of July.

 

Consumer sentiment picked up for the second consecutive month in June but was still near a record low, with spending likely to be weak for another three to six months, according to a university survey.

 

The finance ministry will also consider support for borrowers after a delayed debt repayment period ends in September, said Finance Minister Uttama Savanayana.

 

"We must look at the long term because COVID-19 is not over yet. This crisis is the most severe," he said.

 

The cabinet will consider on Wednesday a 50 billion baht ($1.61 billion) fund to aid small firms, and projects worth about 80 billion baht to help revive the economy, officials say.

 

These will be financed by some of the government's 1 trillion baht borrowing aimed at mitigating the virus impact on Southeast Asia's second-largest economy, which the central bank predicts will contract a record 8.1% this year.

 

($1 = 31.08 baht)

 

(Reporting by Kitiphong Thaichareon; Writing by Oathai Sriring; Editing by Ed Davies)

 

-- © Copyright Reuters 2020-07-02

 

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The bread & butter Thai who is the lions share of the daily spending has empty pockets Sir, many

with a hire purchase payment overdue so how can he or she spend more to help your stimulus.

There is a need tor the Government to come down to the grassoots level & to get a grasp of the situation, which I can not see improving until the New Year at best, & then only if there is no 2nd wave

 

You can't boost consumption if there is no means to acquire the surplus currency required for said consumption.  

 

 

I don't think they have a clue as to the magnitude of problem created by closing an economy for several months.  But they gonna figure it out soon.