Thailand's economy, significantly impacted by the COVID-19 pandemic, has not fully recovered, with the manufacturing sector continuing to contract while merchandise exports decline. Recovery strategies include short-term methods like a one-off digital cash payment scheme and debt relief, and long-term plans involving new free trade agreements, green industry initiatives and infrastructure projects. But the country’s new government is still struggling to address challenges like an ageing population, education inequality and global trade tensions.

 

Unlike other ASEAN countries, Thailand’s real GDP and GDP per capita have yet to outpace pre-pandemic figures. The Thai economy was hit hard by COVID-19 and has experienced a relatively slow economic recovery. Thailand’s large informal economy and dependence on tourism made the economy particularly vulnerable to the pandemic.

 

Mild economic growth in 2023 was primarily driven by activities in the travel sector, but the manufacturing sector continued to contract. Merchandise exports, a backbone of the Thai economy, continued to decline.

 

The new government’s short-term economic policies include a one-off digital cash payment to about 50 million residents across the country, debt relief aimed at tackling illegal loan sharks and efforts to cut energy and electric train costs. Its medium- to long-term economic measures include new free trade agreements, green industry projects and a land bridge project connecting the Gulf of Thailand with the Andaman Sea.

 

Even though the digital wallet scheme has faced criticism from Thai economists, including two former Bank of Thailand governors, the government has decided to continue. The economic stakes are high due to the scheme’s 500 billion baht (US$14 billion) budget and the number of recipients.

 

by Wannaphong Durongkaveroj
Ramkhamhaeng University

 

Wannaphong Durongkaveroj is Assistant Professor of Economics at Ramkhamhaeng University.

https://doi.org/10.59425/eabc.1707472800

 

Full story: EAST ASIA FORUM 2024-02-10

 

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Where's the 10,000 baht sling for all those over 16???

36 minutes ago, webfact said:

Even though the digital wallet scheme has faced criticism from Thai economists, including two former Bank of Thailand governors, the government has decided to continue. The economic stakes are high due to the scheme’s 500 billion baht (US$14 billion) budget and the number of recipients.

This will just create inflation.

They don't produce more or increase efficiency. Just get more money.

Give the man, Srettha, some time....the previous incumbent did nothing to support the post pandemic recovery except spend vast sums of borrowed money of projects that he failed to finish, like the road and rail links to Korat. 

Don't worry the puppet PM who is also the finance minister will cure all economic ills by paying a 500 billion bribe to voters. 

4 hours ago, webfact said:

Thailand's economy, significantly impacted by the COVID-19 pandemic, has not fully recovered,

Significantly impacted by the military actions which effectively shut the country down...

An invented pandemic, therefore an invented post-pandemic economy. 

But the country’s new government 

Government has not changed and will not change.

 

Joke of the day!