Thailand PM calls urgent meeting with economy ministers

[webfact]

Thailand Prime Minister Srettha Thavisin called for an urgent meeting with economy ministers to discuss short-term economic stimulus measures to address Thailand’s sluggish economic performance in the first quarter of 2024.

 

The National Economic and Social Development Council (NESDC) reported that Thailand’s economy grew by only 1.5% year-on-year for the first three months of 2024. This lacklustre growth has prompted the government to consider immediate measures to support small- and medium-sized enterprises (SMEs) and households at risk of defaulting on their debts, according to government spokesman Chai Wacharonke.

 

The government recognises the necessity of implementing these short-term measures swiftly, although more long-term strategies will be introduced in the future, said Chai.

 

A source revealed that the Thai premier met with Deputy Prime Minister and Finance Minister Pichai Chunhavajira, the governor of the Bank of Thailand, and the secretary-general of the NESDC to prepare for today’s meeting.

Chai noted that the 62 year old prime minister was particularly disappointed by the 1.5% growth rate, especially considering the government’s efforts to boost the tourism sector. As a result, ministries and state agencies have been tasked with developing new strategies to stimulate economic activity in the short term.

 

The NESDC’s report last week highlighted that Thailand’s economy grew by 1.5% in Q1 of 2024, with an expected annual growth rate of 2-3%, down from the previous forecast of 2.2-3.2%. Last year, the economy grew by an average of 1.9%.

 

 

 

Slow growth delays

 

Prime Minister Srettha attributed the slow growth to repeated delays in the 2024 budget deliberation and distribution, which led to deficits impacting the economy negatively, according to the spokesman.

 

Finance Minister Pichai stated that the 1.5% growth in Q1 does not reflect Thailand’s actual economic capacity. He emphasised the need for more effective short-term stimuli to boost growth, noting that the figure is lower than those reported by neighbouring countries.

 

Deputy Prime Minister and Commerce Minister Phumtham Wechayachai tasked the permanent secretary for commerce with gathering data for today’s discussions, which will focus on the reasons behind Thailand’s slow Q1 growth. He mentioned that the measures would aim to boost exports and help people cope with the rising cost of living.

 

Deputy Finance Minister Julapun Amornvivat acknowledged that Thailand’s 1.5% growth rate in Q1 was the lowest in ASEAN but noted that it exceeded government expectations. He attributed the slow growth to weak export and industrial sectors but highlighted the strong performance in tourism and services as a positive factor.

 

Julapun expressed optimism that growth would improve later in the year but admitted that significant growth might not occur until the third quarter, given that the 2024 budget was only recently passed.

 

The Bangkok-born prime minister’s meeting is seen as a response to the realisation that the 500-billion-baht digital handout scheme cannot be relied upon to drive immediate economic growth, according to a source.

 

“We have to do something now… without the outstanding economic performance of the tourism and service sectors, we would have encountered an economic recession.”

 

One proposal on the table is to create a war room to monitor the economic situation. The NESDC has urged the government to expedite the disbursement of the 2024 budget, accelerate expenditure planning for the next fiscal year, and assist SMEs by improving access to funding sources, reported Bangkok Post.

 

by Bob Scott

Picture courtesy of International Finance

 

Source: The Thaiger 2024-05-27

 

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[herfiehandbag]

Excretia ventaxia impactum est?

[CharlieKo]

7 minutes ago, herfiehandbag said:

Excretia ventaxia impactum est?

If it hasn't already, it will do by the time these clowns are finished! 

[Ben Zioner]

Tax, tax, tax, and complain about sluggish economy.

 

 

[jonclark]

Ah an 'emergency meeting' is it. Would this be the same emergency meeting of economics gurus that Taksin instructed the PM to have, as reported in yesterdays BK Post?? Taksin is obliged as a condition of his parole to not be involved in politics. I am sure Taksins' puppet is now giving Taksins instructions sorry orders to the economics team. Such duplicity and disrespect for the public, it makes you yearn for the good old days of a military coup. At least you knew where you stood with a coup. 

[ozz1]

What about the 10 thousand baht give away that still happening i don't think so haha

[hotchilli]

3 hours ago, webfact said:

Thailand Prime Minister Srettha Thavisin called for an urgent meeting with economy ministers to discuss short-term economic stimulus measures to address Thailand’s sluggish economic performance in the first quarter of 2024.

More short term measures... but hey, we are in the hub of short term.

[hotchilli]

1 hour ago, ozz1 said:

What about the 10 thousand baht give away that still happening i don't think so haha

Shhhhh

[Purdey]

What is the government going to do? Giving debtors the ability to borrow more or default on loans is foolish. Also commercial banks have clearly not filtered out risky borrowers. It's a terrible position for everyone.

[natway09]

Obviously he is the last to know that the crystal ball is very tarnished & the wand is broken.

The level of corruption, the lack of real infrastructure like sewerage treatment, a lazy police force that no Government is even prepared to tackle, sufficient potable water storage to name but a few all had to come together sooner or later to 

restrict the development & expansion of the tourism sector.

A halfwit could have seen this 20 years ago, that you cannot just keep taking & not giving

[Gknrd]

Oh boy,, finally. I see a new scheme being hatched. 

 

[brianthainess]

2 hours ago, Purdey said:

What is the government going to do? Giving debtors the ability to borrow more or default on loans is foolish. Also commercial banks have clearly not filtered out risky borrowers. It's a terrible position for everyone.

Agree. I don't understand how that works, your in a low paid job, no collateral, but can borrow money to get into debt or more debt with no chance of ever paying it back, I'm a very long way from being anyway near a financial wizard, but 1 + 1 = 2 not 2.03

Edited May 27 by brianthainess

[Pouatchee]

wow... and they are about to make it impossible for small shops who sell weed to keep selling it very soon... talk about contradictions. thousands soon unemployed and shops closing....

[Almer]

Give the Thai's 10.000, but first give the shops notice to be able to stock up on witch's brew and cigarettes, it won't go towards any debt repayment and I doubt it will come to me from the family members we have baled out

[Korat Kiwi]

Open the gates and let more Russian thugs in, to do jobs reserved for Thai until they get caught. 

[0ffshore360]

Given the ongoing incrementally  enhanced forex rates in favour of expats seemingly due to an equal and opposite devaluation of the Baht as of the moment it is quite understandable there is a sense of urgency for "collective" economy ministers.

One thing I am grateful for is that I am not involved in the bs and machinations of those whose task is to defend and protect the financial status and ambitions of the elite ! Anywhere.

 

 

[kickstart]

I like the cover photo of China town in Bangkok, why China town? , is that a hint as to where our government will be going for a few subs, not the underwater type. 

[timendres]

14 hours ago, webfact said:

One proposal on the table is to create a war room to monitor the economic situation.

 

Why didn't the captain of the Titanic think of that? 

[retarius]

Wow a meeting....that will solve the crisis, but how can they fit a meeting in with all of Srettha's travel commitments? And oooh and "to discuss an urgent a short term stimulus measures", that'll be sure to solve the long term economic issues won't it? Nah, let's go back to Italy and discuss silk elephant ties. 

[tomacht8]

What about investments and capital inflows from abroad? I think the announcement of the new tax regulations for money transfers from abroad has unsettled many people. There are definitely a lot of expats but also Thais with fat overseas accounts who have put their money transfers/investments on the back burner. The straw man company model with which many foreigners want to secure their investments in land/house/business has also come under fire. And the paperwork for everything, be it setting up a company/work permit/registration obligations/visas/residence permits, has increased dramatically. Anyone who hinders capital inflows and complicates the framework conditions for investments should not be surprised if growth fails to materialize.