BANGKOK, Thailand – The Center for Economic and Business Forecasting (CEBF) at the University of the Thai Chamber of Commerce (UTCC) expects the government’s plan to distribute the 10,000 baht cash stipend in September to help stimulate the economy. The stipend, part of the digital wallet program, targets vulnerable groups. According to experts, it will likely boost consumption, particularly for necessities like food and household goods.
Dr. Thanawat Phonwichai, President of UTCC, believes this initiative could increase GDP growth by 0.2-0.3%. This would bring Thailand’s GDP for the year to 2.7-2.8%. The program is expected to generate a ripple effect, with the funds circulating through the economy twice.
Looking forward, the CEBF predicts that Thailand’s GDP could grow by 3.5-4% in 2025. This growth would be driven by continued momentum from the digital wallet program, as well as seasonal spending during major events like Chinese New Year, Valentine’s Day, and Songkran.
In addition, the center highlights the importance of addressing household debt, which has risen to an average of 606,000 baht per household. This is an 8.4% increase, marking the highest debt level in 15 years.
The CEBF stresses the need for government measures to manage this issue, especially by converting informal loans into formal financial systems. This would ease the burden of high interest rates on borrowers.
Despite the rise in household debt, the center notes that if the borrowed funds are used for productive investments—such as home or car purchases—it can improve living standards and support economic growth. (NNT)
