The current state of the economy is facing significant challenges, but experts believe that there is hope on the horizon as the national budget is put into action. According to economist Nonarit Bisonyabut from the Thailand Development Research Institute (TDRI), the economy is currently going through a tough phase due to reasons like slow budget disbursement and high interest rates, both locally and internationally.
Nonarit remains optimistic, citing a potential improvement in the global economic landscape as interest rates decrease. He refers to the current state of the economy as the ‘4am economy,’ indicating that a positive change is on the way. With the beginning of state spending and positive indicators from the export sector and global economy, Nonarit anticipates a brighter future with economic growth.
Nevertheless, factors such as global market demands, addressing challenges posed by an ageing society, and political stability are crucial for sustained economic growth. Political uncertainties, especially surrounding the potential removal of Prime Minister Srettha Thavisin, could further hinder the economy’s recovery.
While discussing the government’s actions in stimulating the economy, Nonarit highlights a focus on initiatives like the digital wallet scheme over smaller-scale economic measures. There are concerns about weak exports, reduced spending, and challenges in various sectors due to global factors like the trade war and geopolitical tensions.
Additionally, business associations are urging the government to take more immediate and effective measures to boost liquidity and support struggling sectors. Deputy Finance Minister Paopoom Rojanasakul acknowledges the challenges facing the economy, emphasizing the importance of collaboration between the government and the central bank to implement necessary fiscal and monetary measures. Despite the current difficulties, there is optimism for economic recovery in the latter part of the year with upcoming reforms and initiatives in the pipeline.
