Stimulating private consumption is a reasonable strategy for the government to maintain economic growth amidst global uncertainties, according to Tim Leelahaphan, an economist at Standard Chartered Bank Thailand. The first half of 2023 saw a 7% year-on-year increase in the country’s private consumption.
Expectations are high for private consumption and tourism to be the main drivers of economic growth in the latter half of the year. Standard Chartered Bank Thailand is currently awaiting further details of the government’s proposed 10,000 baht digital handout scheme, which requires a massive portion of the government’s budget, estimated at 560 billion baht.
Tim projected an increase in the fiscal deficit to 4.0% of GDP in 2024, up from 3.8% in the current year. However, he also noted that the government is expected to focus more…
