BANGKOK, Thailand – The first phase of the 2024 economic stimulus program, which distributes a 10,000-baht stipend to vulnerable groups, has commenced. The program, totaling 145 billion baht, is expected to have an immediate impact as recipients are free to spend the cash, particularly on essential goods and local services.
Dr. Thanavath Phonvichai, President of the University of the Thai Chamber of Commerce (UTCC), noted that surveys from the UTCC and the government show most recipients plan to use the funds for necessities, while others may invest in tools or pay off informal debts. He expects the stimulus to circulate through the economy two to three times. The first round of spending is likely to focus on local community markets, with later rounds benefiting local businesses and larger suppliers. This multiplier effect is anticipated to boost economic activity during festive periods such as Loy Krathong (Nov 15) and New Year, benefiting the tourism sector in the fourth quarter.
Dr. Thanavath predicts that the stimulus will contribute to GDP growth of 3.8-4.3% in Q4, leading to an overall growth of 2.6-2.8% for the year, exceeding previous projections. He also urged the government to track indicators like fuel consumption, hotel occupancy, and VAT collections to assess the policy’s success. Additionally, he recommended further stimulus measures, such as tax incentives, to push overall growth closer to 3%.
Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, emphasized the effectiveness of the cash handout in stimulating economic activity, particularly in flood-affected areas. He echoed calls for additional measures during major festivals to sustain economic momentum.
These expert opinions highlight the potential of the 10,000-baht handout to boost local economies and emphasize the need for ongoing government intervention to ensure long-term growth. (NNT)
