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Thai Government accepts global economic slowdown

Thai Deputy Prime Minister and Minister of Energy has acknowledged that the Thai export sector is facing challenges due to the global economic slowdown caused in part by the US policy interest rate hike. Speaking at the IBusiness Forum 2023, he said the government is aware that the country’s infrastructure has been neglected for years and requires a significant investment to repair and build, to attract new industries such as electronics and new vehicles.

The Minister of Finance highlighted three important aspects of the sustainability of the Thai economy: growth, stability, and employment. The Thai economy is expected to expand at 3.8% this year, and the growth rate will be suitable for Thailand and range between 4-5%. Inflation is expected to gradually return to the target range of 1-3% due to government measures. However, Thailand is still facing a labor shortage, particularly in skilled workers.

Regarding the preparation of the 2024 budget, there may be delays due to the upcoming election. The new budget is expected to be officially available in January 2024, which is considered a very challenging factor.

Despite these challenges, the government is taking a proactive stance in accepting the global economic slowdown and is working towards sustainability for the Thai economy. While the investment may result in an increase in public debt, it is viewed as necessary to support and enhance the country’s capabilities to increase growth and stability.

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