Economic populism might struggle to address the root causes of Thailand’s economic woes: Issues like falling investor confidence also touch on political stability, the rule of law and transparency – underlying structural issues crucial for sustained growth. Industry leaders have called for more sector-specific strategies for economic recovery, including for long-term vision for a resilient tourism industry.
Thailand’s economy grew less than expected in the third quarter (1.5 per cent), reflecting sluggish exports and reduced post-pandemic government spending.
Still, household consumption grew 8.1 per cent and private sector investment accelerated. The National Economic and Social Development Council forecasts a 2.5 per cent growth in gross domestic product for the year.
Populist strategies may have had some positive impact, but relying on consumption-focused policies for growth isn’t a magic bullet. A resilient economy requires diversity, considering risks like inflation, climate change and pandemics.
PHEU THAI’S FLAGSHIP DIGITAL HANDOUT PLAN
One measure that stands out is the Thai government’s flagship 10,000 baht (US$277) digital cash handout, totalling US$14 billion or about 3 per cent of GDP. Mr Srettha said this marked “the beginning of Thailand’s economic shift”.
Eligibility is set at age 16 and above, which emphasises inclusivity, with a cap on monthly income or bank savings added on after much public criticism. About 50 million Thais, of a population of more than 70 million, are expected to receive the payment.
Source: CNA
