Thailand’s fiscal position geared to absorb potential economic shocks

According to Pornchai Thiraveja, the director-general of the Fiscal Policy Office, Thailand’s robust fiscal position is well-equipped to buffer any potential economic shocks. The country boasts a fiscal space substantial enough to absorb crises equating to 10% of the GDP.

The Thai financial institutions are stable economically, with a 19.9% Bank for International Settlements ratio, which is well above the threshold set by the Bank of Thailand at 8.5%. Despite non-performing household loans accounting for 2.7% of total outstanding loans, the financial stability is set to bolster long-term efficient growth, reports Bangkok Post.

The government’s fiscal cushion is prepared to handle future shocks amidst escalating uncertainty. Although public debt-to-GDP ratio is estimated to reach 11.1 trillion baht by the end of the fiscal year, a…