Thailand’s Deputy Finance Minister announced on Wednesday that the nation’s economy is projected to expand by 3.4% in the first quarter of 2025 compared to the previous year. This anticipated growth rate would mark the fastest pace seen in 10 quarters, signifying a positive upward trajectory for the economy.
Earlier, Prime Minister Paetongtarn Shinawatra held a discussion with Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance (MOF), and Prommin Lertsuridej, Secretary-General to the Prime Minister, to discussion the progress of economic stimulus measures aimed at boosting GDP growth by 3-3.5%, as assigned to the Finance Minister.
The MOF collaborated with several national agencies, including the Office of the National Economic and Social Development Council (NESDC), the Bank of Thailand (BOT), the Budget Bureau (BB), and the Office of the Public Sector Development Commission (OPDC), to develop the following two-phase measures:
Short to Medium-Term Plan:
- Accelerate government budget disbursement: Release funds exceeding THB 100 billion from the government, state enterprises, and various funds.
- Enhance budget efficiency: Redirect funds to support economic restructuring.
- Boost private sector investment: Focus particularly on Board of Investment (BOI) incentives, with THB 1.14 trillion worth of requests for 2024. The government will facilitate the ease of doing business, especially concerning permits.
- Seal large infrastructure projects: Fast-tracking projects like irrigation systems to meet agricultural, industrial, and consumer needs, alongside initiatives like the Land Bridge, rail linkages with China, and airport-port expansions to position Thailand as a regional transportation hub under the Ignite Thailand policy.
- Stimulate exports: Open new markets, expedite trade negotiations, and reduce export process bottlenecks, with a focus on agricultural product pricing.
- Promote tourism: Organize events and festivals to increase per capita spending and extend tourist stay durations in Thailand.
Medium to Long-Term Plan:
- Implement industrial reform via Sandbox approach: Align with shifting global market demands and enhance existing industry competitiveness.
- Revise energy pricing and increase renewable energy ratios: Apply policies like Direct PPA and UGT to meet current trade and investment standards.
Reform agriculture using a Sandbox approach: Market-led reforms beginning with key agricultural products like rice, cassava, para rubber, palm oil, and sugarcane, focusing on demand-supply balance and capital factor development, including soil, seeds, water, and productivity, to improve farmers’ living standards.
