According to Finance Minister Arkhom Termpittayapaisith, the government is aiming to inject 1 trillion baht into the economy in order to stabilize it in light of the Omicron variant.
He said 600 billion baht will be taken out of state investment funds for the 2022 fiscal year, while about 300 billion baht will be allocated from state enterprises’ investment funds. Meanwhile, the government also has another 250 billion baht left from the 500 billion baht it borrowed to mitigate the pandemic’s impact on the economy.
During his speech at Bangkok Post International Forum 2021, the minister said Thailand’s economy continues to improve however it became uncertain after the Omicron variant emerged.
According to the minister, in the third quarter of this year, Thailand’s GDP only shrank 0.3% which was less than expected as the economy has been backed by international trade and the government’s internal trade policy.
He said the government is also working on maintaining economic stability and preparing for a post-Covid recovery. It is expected that the economy will recover and show positive growth in the fourth quarter of this year.
Next year, Thailand’s economy is expected to grow by 4% thanks to the return of foreign tourist arrivals. However, there are still some risks such as the volatile crude oil prices. The minister said it is only a short-term impact from Covid-19, and the situation will eventually improve. Moreover, Thailand has already started to move away from primarily relying on fossil fuels.
To ensure Thailand’s economy can recover quickly, the main focus should be on promoting inclusive growth, Minister Arkhom said. He noted that the government’s various economic restructuring programs are aimed at promoting a bio-circular economy, accelerating infrastructure projects, and developing a digital economy.
The Finance Ministry will closely work with the Bank of Thailand to ensure that the country’s fiscal and monetary policies are in sync to create a conducive environment for a quick recovery. (NNT)
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