Connect with us

Economics

Thai Cabinet approves new economic stimulus measures

The Thai government has rolled out new stimulus measures intended to boost full-year economic growth to 2.8%

Boris Sullivan

Published

on

The Thai Cabinet today approved three new stimulus packages to prop up the softening economy, said Finance Minister Uttama Savanayana.

The government expects the measures to propel full-year economic growth to 2.8% from a projection of 2.6% recently announced by the National Economic and Social Development Council (NESDC).

The Office of the National Economic and Social Development Council (NESDC) has recently announced that Thailand’s Q3 2019 GDP growth came in at 2.4 percent, adjusting the overall GDP growth this year down to 2.6 percent, citing negative factors from the trade war affecting the export sector.

The aim is to boost the economy during the remainder of this year and the first quarter of next year

Finance Minister, Mr Uttama Savanayana

1. Grassroot economy  booster

The first package is to boost the grassroots economy and is divided into three sub-projects, namely a village fund for 71,742 villages graded A, B and C. 

Each will receive 200,000 baht to invest in community rice barns, space to dry crops, rice mills, organic fertilizer, water sources or machinery for processing farm products.

There is also the Credit for Community Business project under which the BAAC will provide credit lines, amounting to 50 billion baht, to Village Funds and urban communities for investment in small businesses. The credit line will be for three years at an annual interest rate of 0.01%.  The program will start on December 1st and end on November 30th 2023.

2. Helping farmers to reduce costs

To help farmers cover harvesting and rice quality improvement costs for the 2019-20 crop year, each household will receive 500 baht per 0.06 hectares, up to a maximum of 1.2 hectares or 10,000 baht.  About 4.57 million farming households will benefit from this package, with payments to commence September 30th 2020. The Bank of Agriculture and Agricultural Cooperatives (BAAC) will make the payments, totalling 28 billion baht, and will be refunded later by the government.

3. Home buyers 50000 baht giveaway

The third package is intended to help real estate developers sell their surplus units by offering a 50,000 baht “giveaway” down payment incentive to buyers, each of whom must have a monthly income not exceeding 100,000 baht, and must be listed in the Revenue Department’s record of taxpayers.

The number of buyers will be limited to 100,000 and the 50,000 baht “giveaway” will be on a first come first serve basis. The program will start on November 27th and last until March 31st 2020.

Finance Minister Uttama said this housing stimulus package will cost the tax payer about 5 billion baht, and refunds will be wired into the accounts of the buyers through the PromptPay application by the Government Housing Bank.

Comments

Economics

Thai economy to grow 4% in 2021 following 6.5% decline in 2020

The World Bank is now expecting the Thai economy to see 4% growth this year, and a 4.7% growth in 2022, despite current challenges from the new wave of COVID-19 infections.

Olivier Languepin

Published

on

Crowded downtown area in Bangkok

The World Bank now expects that the Thai economy to expand by 4 per cent in 2021, according to the latest World Bank Thailand Economic Monitor report “Restoring Incomes, Recovering Jobs” released on Wednesday (Jan 20).

(more…)
Continue Reading

Banking

BoT sees mild impact of new COVID-19 wave on the economy

The Bank of Thailand (BoT) does not see the new wave of COVID-19 infections as having as much of an impact on the economy as the first wave, as fewer businesses have had to be suspended.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Despite a new and wider wave of COVID-19 infections in the country, the Bank of Thailand (BoT) has assessed that the economic impact of the situation will not be as severe as the first wave as the effects of the virus are not as pronounced, and public health preparations, including plans for vaccination, are in place.

(more…)
Continue Reading

Economics

COVID-19 brings first consumer confidence drop in 3 months

Consumer confidence in December 2020 was measured at 50.1 points, down from 52.4 the previous month. Economic confidence was also down to 43.5 from 45.6 points.

National News Bureau of Thailand

Published

on

BANGKOK (NNT) – Concerns linked to the new wave of COVID-19 infections has weighed on both daily life and business, resulting in the first drop in the Consumer Confidence Index in 3 months.

(more…)
Continue Reading

Latest

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 13,608 other subscribers

Trending