Thailand mulls over new measures to spur spending

Thailand's Ministry of Finance is preparing to roll out new measures to encourage spending in a bid to maintain the country’s economic recovery. (Photo: thainews.prd.go.th)

Bangkok (VNA) – Thailand's Ministry of Finance is preparing to roll out new measures to encourage spending in a bid to maintain the country’s economic recovery, said Pornchai Thiraveja, Director-General of the Fiscal Policy Office (FPO).

The ministry will consult the FPO on the possible solutions, Pornchai said, adding that he expects other ministries to unveil their own measures to promote consumer spending later this year.

The Thai government has launched a number of packages to ease the burden of the COVID-19 pandemic, ranging from cash handouts to tax measures since 2020.

The FPO reviews its forecast of economic outlook every three months. According to its latest projection, the Thai economy is expected to expand by 3-3.5% this year, and by 4% in 2023, the Bangkok Post reported.

The International Monetary Fund (IMF) has forecast that the Thai economy will continue its post-pandemic recovery with an expansion of 2.8% this year and 3.7% in 2023. Private consumption and tourist arrivals are expected to remain strong for the rest of the year, although external demand is expected to weaken.

The IMF's growth projection for Thailand in 2023 has dropped by 0.3 percentage points to 3.7% due to lower expectations for external demand from trading partners.

Pornchai said that Thailand's reopening and the return of foreign tourists have played a key role in reviving the economy. The country is expected to welcome 8-10 million travellers this year, with higher numbers forecast for 2023.

He also said that Thailand has sufficient fiscal space to handle global economic uncertainties if the world goes into recession next year. As of August, Thailand's public debt-to-GDP ratio stands at 60.7%, with a ceiling of 70%. The country's GDP is currently at 16.9 trillion baht (444 billion USD)./.