GDP Forecast To Rise 3.8% Partly Due To Digital Wallet Campaign

[webfact]

 

THAILAND’S GROSS DOMESTIC PRODUCT is forecast to rise 3.8% next year partly due to the Pheu Thai-initiated digital wallet campaign, the Bank of Thailand’s assistant governor Piti Disyatat said Wednesday (Nov.29).

 

Without the much-heralded digital wallet project under which a sum of 500 billion baht will be spent up by an estimated 50 million people in a six-month period, the GDP would only rise 3.2% next year, according to the central bank’s assistant governor.

 

The predicted 3.8% growth in the national economy will be in part attributed to the populist handout campaign scheduled to kick off in May where all Thai nationals aged 16 years and over can purchase merchandise in the boundaries of their home district via the digital wallet.

 

By Thai Newsroom Reporters

Top: Bank of Thailand logo and signage. Photo: Thai Rath

 

Full story: THAI NEWSROOM 2023-11-30

 

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[Raindancer]

How can GDP possibly rise with a 500 billion baht debt to raise the digital wallet?

[mfd101]

Yes, an interesting concept of 'GDP' and 'GDP growth'. Nothing sustainable. Come & gone in a flash.

 

As usual in Thailand, all appearances, no substance.

[Mike Lister]

18 minutes ago, Raindancer said:

How can GDP possibly rise with a 500 billion baht debt to raise the digital wallet?

GDP is the sum of everything that is purchased or produced, it can be measured either way. So if everyone is given 10k Baht each, that means the sum of all purchases will increase.

[Raindancer]

1 minute ago, Mike Lister said:

GDP is the sum of everything that is purchased or produced, it can be measured either way. So if everyone is given 10k Baht each, that means the sum of all purchases will increase.

Understand the principle.  But it is really robbing Peter to pay Paul.  And is probably a head line to try and impress the world.   So it really is disinformation.

[Mike Lister]

1 minute ago, Raindancer said:

Understand the principle.  But it is really robbing Peter to pay Paul.  And is probably a head line to try and impress the world.   So it really is disinformation.

Government(s) regularly spend money to build infrastructure or support the population and GDP rises as a result, without government spending, GDP would be very low in many countries.

[StayinThailand2much]

I'm sure that is a typo. Those optimists probably said 38%, not 3.8%...

[mikebell]

1 hour ago, webfact said:

THAILAND’S GROSS DOMESTIC PRODUCT is forecast to rise 3.8% next year partly due to the Pheu Thai-initiated digital wallet campaign, the Bank of Thailand’s assistant governor Piti Disyatat

He works weekends for TAT.

[Eric Loh]

1 hour ago, Raindancer said:

Understand the principle.  But it is really robbing Peter to pay Paul.  And is probably a head line to try and impress the world.   So it really is disinformation.

The scheme will ultilize a budget of about 560 B Baht and likely to be financed by banks or maybe bonds over a period of years. It aimed to stimulate cash flow by roughly 4 times to over 2 T Baht that will boost the expansion of GDP of 2024 to 3.8% upwards. The GDP forecast is for next year while loan will be serviced over a longer period. 

[Will B Good]

If 'free' money boosts GDP why isn't every country on Earth doing it......idiots.

[Mike Lister]

1 minute ago, Will B Good said:

If 'free' money boosts GDP why isn't every country on Earth doing it......idiots.

Many have done so, it's known as Quantitative Easing which nearly always results in inflation, cases in point, the US, UK and Europe during covid.

[Will B Good]

2 minutes ago, Mike Lister said:

Many have done so, it's known as Quantitative Easing which nearly always results in inflation, cases in point, the US, UK and Europe during covid.

Exactly.

[Eric Loh]

6 minutes ago, Will B Good said:

Exactly.

No stimulus can lead to stagnation. Thailand low inflation due to less economic activities, less income generated and lower economic growth. 

[Mike Lister]

1 minute ago, Eric Loh said:

No stimulus can lead to stagnation. Thailand low inflation due to less economic activities, less income generated and lower economic growth. 

This time it will be different.......!

 

I just read the economic forecast report from a major Securities house who is planning on inflation as a result of this stimulus.

 

https://res.innovestxonline.com/stocks/extra/57676_20230913181645.pdf

[Srikcir]

3 hours ago, webfact said:

the GDP would only rise 3.2% next year

That's more GDP growth you'll see versus billions invested in light rail/high speed rail over next 20 years where potential for default is likely.