Thailand strives to revive economy | World

Illustrative image (Photo: Bangkokpost)

Bangkok (VNA) – The Thai Ministry of Finance will carefully analyse the country’s economic figures thoroughly as Thailand prepares to ramp up government spending in the new budget to kickstart its faltering economy.

Meanwhile, the National Economic and Social Development Council (NESDC) will conduct a “health check” on the economy, examine household debt, people’s income, and the business potential of small- and medium-sized enterprises.

The moves come after the Cabinet approved a fiscal 2024 budget with government spending of 3.48 trillion THB (100 billion USD), a jump of 9.3% from the fiscal year 2023.

According to the NESDC, the economy has slowed this year, expanding just 1.9% in the first nine months. The third quarter’s  GDP growth slowed to 1.5% from 1.8% in the second quarter. Industrial production also fell in the third quarter.

The country’s GDP is projected to grow 2.5% this year compared with 2.6% last year. Meanwhile, inflation is forecast to remain at 1.4%, and the current account balance is expected to exceed 1% of GDP.

The World Bank predicts Thailand will see some of the lowest economic growth in ASEAN over the next 20 years as the country’s population ages and private investment slows.

Without economic reform, the Thai economy is expected to grow at just 3% per year over the next two decades, the bank said./.