Thai economy needs more stimulus amidst global challenges, says K-Research

[webfact]

Kasikorn Research Centre (K-Research) has warned that the Thai economy requires additional government stimulus to boost domestic consumption amidst challenges such as global politics, China’s economic deceleration, and fluctuating currency rates.

 

The centre’s managing director, Burin Adulwattana, emphasised that the decrease in headline inflation for the fourth consecutive month in January does not suggest deflation risks, but rather highlights consumers’ dwindling purchasing power.

 

“Low inflation is temporary as core inflation remains up slightly by 0.5%,” Burin said, arguing that the economy needs enhanced measures to bolster purchasing power.

 

Despite a slow return of Chinese tourists, tourism numbers remain the only economic indicators showing positive growth this year. Burin anticipates a 2% growth in exports this year, following a contraction of nearly 1% in 2023, as global trade recovers. However, he warned of potential challenges, including conflict in the Red Sea and the potential impacts of climate change.

 

“The swing of the baht is likely to persist, pressured by the Federal Reserve’s interest rate policy and uncertainties regarding the Thai interest rate,” he noted.

 

by Alex Morgan

Photo courtesy of iStock

 

Full story: The Thaiger 2024-02-13

 

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[Emdog]

A real crackdown and end to corruption would be like a big tax cut and could stimulate the economy. What percentage of budgets and costs are due to corruption? A tax that gives no benefits to the Thai people at large

[hotchilli]

5 hours ago, webfact said:

Kasikorn Research Centre (K-Research) has warned that the Thai economy requires additional government stimulus to boost domestic consumption amidst challenges such as global politics, China’s economic deceleration, and fluctuating currency rates.

Give people a livable wage and they will spend... stimulus does very little in the short term... but that's where Thailand excels.