Prime Minister Srettha warns of a possible recession in Thailand and is looking for good ideas
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Prime Minister Srettha calls for new weekly meetings to brainstorm ways to revive the sluggish economy. The economy is not safe from the risk of recession amid sluggish GDP growth, high household debt and fast-growing bad loans, Prime Minister Srettha Thavisin said on Wednesday.
Srettha, who is on an official trip to Japan, announced that he will chair an emergency meeting on Monday with ministers responsible for the economy and related agencies. The purpose of this meeting is to brainstorm new ideas to revive the economy. These special meetings will take place on a weekly basis for the foreseeable future, the Prime Minister said, emphasizing the need to come up with fresh and innovative ideas.
The move follows reporting from the National Economic and Social Development Council (NESDC), which reported economic growth of just 1,5% year-on-year for the first three months of the year. The state planning agency lowered its gross domestic product (GDP) growth forecast for this year to a range of 2% to 3%, slightly lower than its previous forecast of 2,2% to 3,2%. Last year growth was 1,9%.
The forecast downgrade reflects higher levels of external risks, particularly rising trade protectionism, geopolitical conflict and increasing volatility in the global economy, the NESDC said. Thailand's growth lagged behind that of six other members of the Association of Southeast Asian Nations (Asean) in the first quarter. The Philippines and Vietnam led the pack with 5,7% growth each, followed by Indonesia (5,1%), Malaysia (4,2%) and Singapore (2,7%), according to NESDC figures.
“GDP grew by only 1,5%. Without the services and tourism sectors as a buffer, we would now be at risk of a recession,” Srettha said. “There is also credit card debt, bad debt and household debt that needs to be addressed.”
Asked whether the government was considering short-term measures to stimulate the economy, he said: “That is why the meeting of economic ministers will be held. But at this point, the meeting will not produce any surprise project.” “From now on, such meetings will take place every week. I want to listen to ideas from everyone, including people from international trade, the agricultural sector and lawyers.”
The government's 500 billion baht spending on digital wallets is one of the important measures to stimulate the economy in the short term, the spokesperson said. On Tuesday, the Cabinet approved a plan to increase the 2024 budget worth 3,48 trillion baht to help finance the scheme.
Finance Minister Pichai Chunhavajira said the additional amount will be decided this month, but it should not exceed the 122 billion baht previously indicated by the Budget Office, which would increase the 2024 budget to 3,6 trillion baht.
Source: Bangkok Post
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Known as Khun Peter (62), lives alternately in Apeldoorn and Pattaya. In a relationship with Kanchana for 14 years. Not yet retired, have my own company, something with insurance. Crazy about animals, especially dogs and music.
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Then as PM he has achieved in the past months exactly the opposite of what he announced he would improve. Because despite increasing numbers of tourists and therefore income, but also despite his many trips to the EU (including FR, DE, UK. IT), to the neighbouring countries plus China and now Japan, not a single additional foreign investment or expanded trade agreement, only encouragement and mentions. A declining GDP, a slowdown in growth, and an increase in private debt. In the meantime, an attack is being launched on his reputation by a number of members from the Senate: https://www.bangkokpost.com/thailand/politics/2797529/court-to-decide-on-pms-fate and Big Boss gnaws his chair legs: https://www.bangkokpost.com/opinion/opinion/2791732/whos-directing-behind-the-scenes-
The figures are always available afterwards, but it has been clear for months that domestic spending is decreasing and that it sometimes resembles the time of corona.
At the end of the month you see a revival and people want to use the car they bought on installments and eat in the restaurants. A week later it is much less again.
The exports that still exist are improving because of the poor exchange rate of the baht.
Ultimately, it's not rocket science. Abolish the nonsensical bureaucracy once and not all of it, halve the nonsensical regulations (ditto) and the regulations that are maintained will be subject to inspection.
The companies that want to do well spend a lot of money on regulations with the risk of fines if things don't go well (plenty of people who can apply plenty of rules) and others pay a pittance to the police so that sales in an area are tolerated. Only if DSI thinks it is becoming too salacious will there be no sanction but advice to stop illegal activities... As an expert I can tell you about corruption at the highest level.
But yes, it remains Thailand and nothing will change. And I always think that politics has been chosen to solve these problems instead of making them worse. Oh no, I'm lying about that last part.
A prime minister who is slowly panicking and no longer knows how to proceed. It's the same as warning investors
Quote: “The forecast downgrade reflects higher levels of external risks, in particular rising trade protectionism”
Well, as long as a foreign (small) investor in Thailand pulls the short straw, I don't see that share shooting up.
Of course they do not want to be overwhelmed by foreign countries, as has happened in, among others. The Netherlands (housing market) ... But so far there has been no ROI (return on investment) or it has been too limited.
Then I can still have such good business ideas...