AS Thailand suffers from the trade war and a slowing global economy, it needs fresh year end economic stimulus measures to help boost the nation’s economic growth to reach forecasted figures.
Prime Minister Prayut Chan-o-cha’s deputy secretary general for political affairs Kobsak Pootrakool said the measures would play an important part in lifting the economy in the fourth quarter to over 2.8 per cent growth and over 2.6 per cent for the full year.
Speaking after a cabinet meeting chaired by the premier on the nation’s economy, he said the government agreed that Thailand remains under pressure from the ongoing trade war between China and the United States, and a slowing global economy.
In view of these, Kobsak said the government should take additional steps to boost the economy throughout December until the first quarter of next year.
According to the Bangkok Post, the National Economic and Social Development Council (NESDC) had reported that the economy grew 2.4 per cent year on year in the third quarter.
It was driven mainly by increases in private and government consumption and investment, slightly improving from 2.3 per cent year on year in the second quarter but lower than the 2.8 per cent registered in the first quarter.
Slowing economic growth in the third quarter had prompted the government's think tank to cut its GDP forecast for 2019 yet again to 2.6 per cent, down from earlier projections of between 2.7 per cent and 3.2 per cent.
NESDC attributed the lower projection to poor export prospects in light of the slowing global economy, the prolonged trade war and the baht's appreciation, while private investments was slower than expected this year due to the prolonged political struggle to establish a new government which had a knock-on effect on public investment.
Kobsak said the NESDC reported that a fourth quarter growth of 2.8 per cent would be sufficient to ensure full year growth of 2.6 per cent as predicted.
“So we need to induce more impetus," he added.
He however declined to elaborate on details of the stimulus measures, saying they would be announced later by the Finance Ministry.
The Bangkok Post also learned that Deputy Prime Minister Somkid Jatusripitak, Finance Minister Uttama Savanayana and executives from state owned banks had met to discuss the fresh stimulus measures.
Kobsak said the cabinet also ordered related agencies to speed up disbursement of 115 billion baht (RM16 billion) in budgeted funds for state enterprises in December.
The budget is mostly for the state owned oil company PTT, the State Railway of Thailand, the Mass Transit Authority of Thailand, the Electricity Generating Authority of Thailand, the Metropolitan Electricity Authority and the Provincial Electricity Authority of Thailand.
The government had also approved the framework for economic management in 2020, which covers measures to assist low income earners and methods to promote private investment and foreign tourist arrivals and boost exports.
State owned enterprises were also ordered to proceed rapidly with planned development projects for next year.
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