Thailand’s Ministry of Finance aims to inject over THB500 billion ($15 billion) into the economy to boost the country’s GDP growth by over 1.8%, focusing on stimulating consumption, investment, and providing soft loans.
This comes after the International Monetary Fund (IMF) revised Thailand’s 2025 GDP growth forecast downward from 2.9% to 1.8%, citing the impact of US reciprocal tariffs. Thailand remains the only ASEAN country whose GDP projection has been cut to below 2%. For 2026, the IMF anticipates a further decline to 1.6%.
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Street vendors in the bustling streets of Bangkok and Chiang Mai attract tourists with unique foods and traditional souvenirs, contributing to the vibrant atmosphere of the cities in Bangkok, Thailand on November 18, 2024. Photo by AFP |
Deputy Prime Minister and Minister of Finance Pichai Chunhavajira said that he views the IMF forecast as a preliminary assessment. He acknowledged that U.S. President Donald Trump’s tariff policies may have some impacts, but affirmed that the government is closely monitoring developments and stands ready to implement stimulus measures to cushion the GDP slowdown and sustain growth at prior levels.
He added that the source of funding remains under review, with several options being considered. Consultations are ongoing with key agencies, including the National Economic and Social Development Council and the Bank of Thailand.
Meanwhile, the Finance Ministry’s Permanent Secretary Lavaron Sangsnit affirmed that Thailand’s fiscal position remains robust.
He emphasised that the THB500-billion stimulus package must be deployed strategically, noting that stimulating domestic consumption could deliver swift economic gains. Investment, he added, is equally vital to support structural economic reform.
Lavaron said that the final decision on the funding source has yet to be made. Options include budget reallocation, utilisation of the remaining 150 billion THB from previous stimulus efforts, and mobilising funds from state financial institutions for lending purposes. Details of the proposed projects should become clearer by next month, pending further global economic developments.
