Thailand: Additional stimulus package a possibility

  • An additional stimulus package could be launched later this year to invigorate the economy after 3Q19 GDP was weaker than expected.
  • The economic cabinet chaired by Prime Minister Prayut Chan-o-cha yesterday acknowledged that 3Q19 economic growth reading was softer than expected, said Kobsak Pootrakool, deputy secretary-general to the prime minister for political affairs.
  • But the two phases of the Taste-Shop-Spend scheme, which offered a THB1,000 handout and 15-20% cash rebate for spending outside home provinces, were not taken into account. The scheme started in late Sep 19.
  • “The government is waiting for the National Economic and Social Development Council (NESDC) announcement on 3Q19 economic growth figures, scheduled for 18 Nov 19,” Mr Kobsak said. “The economic cabinet’s next meeting is scheduled for 22 Nov 19.”
  • “The economic cabinet authorised related agencies to prepare in advance for additional stimulus measures in case they are needed,” Mr Kobsak said. “The package will be ready at the next economic cabinet meeting.”
  • Deputy Prime Minister Somkid Jatusripitak said earlier this week that a third phase of the Taste-Shop-Spend scheme is likely, while Finance Minister Uttama Savanayana said it would take a month to assess whether a third phase is needed.

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