Thailand's Prime Minister Srettha Thavisin attends a session of the ASEAN-Japan Commemorative Summit at Hotel Okura Tokyo in Tokyo on December 17, 2023. (Photo by Kazuhiro NOGI / POOL / AFP) (Photo by KAZUHIRO NOGI/POOL/AFP via Getty Images)
Kazuhiro Nogi | Afp | Getty Images
Thai Prime Minister Srettha Thavisin said on Wednesday she believes the country's economy is in crisis, adding that in addition to handouts, the government will also implement stimulus measures to boost growth.
“I confirm that the economy is not doing well and is in crisis,” he told reporters, adding that it was OK if the central bank disagreed with him.
Srettha's comments came after the central bank governor told Reuters on Tuesday that government stimulus measures would not solve structural problems in Southeast Asia's second-largest economy.
The government this week cut growth forecasts for 2024 to 2.8% from an earlier forecast of 3.2%, reflecting weaker exports and foreign tourist arrivals.
Thailand's growth has been slower than expected but the economy is not in crisis as portrayed by the government, said Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput, who was criticized by the prime minister for keeping interest rates low despite low rates had not reduced inflation.
Srettha, who is also finance minister, told the governor that high interest rates were hurting businesses and urged the BOT to cut interest rates, which are at 2.5%, the highest in a decade.
His government has promised a series of stimulus measures to revive the economy, including a $14.3 billion aid program for 50 million Thais.
“Reducing interest rates is a matter for central banks… but there will be other policies besides the digital wallet.”
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