The private sector has lauded the government’s spending stimulus measures, including the half-half co-payment, Shop Dee Mee Kuen and We Travel Together campaigns, as they give consumers more purchasing power, and bring more money into the economy. The private sector recognizes the need for the government to continuously implement such measures.
The Executive Chairman of Kasikorn Research Center (KRC), Dr. Charl Kengchon, said that the Thai economy is expected to expand 2.6 percent in 2021, driven by government spending, consumption and investment. The government’s co-pay, Shop Dee Mee Kuen and We Travel Together projects, aimed at stimulating spending, have shown clear results in the short term.
People have more purchasing power, and there is more money injected into the economy, particularly the local economy. However, the growth rate is not significantly high due to some uncertainties. The COVID-19 pandemic will continue to shape the future direction of the world economy. Despite the COVID-19 vaccine development, its availability and accessibility remain an issue. As a result, the plan to reopen Thailand to international visitors will be slowly implemented in the second half of the year. Other factors include the appreciation of Thai baht and the political situation.
Therefore, it is necessary that the government continues to implement economic stimulus measures, while a royal decree to borrow 1 trillion baht, together with the Annual Budget Expenditure Act of 500 billion baht, should be enough to support the economy without incurring more debt.
The private sector has suggested the government focus on helping the tourism sector, which has been heavily hit by the COVID-19 pandemic. The government must consider introducing measures to help specific groups, while assisting real estate entrepreneurs who are dealing with liquidity problems, with some 200,000 units waiting to be sold by the end of next year. At the same time, entrepreneurs must remain cautious when launching new projects.
Meanwhile, the automotive industry is starting to recover, but it has to enhance the manufacture of future vehicles to stay competitive. (NNT)
