The Thai government is embarking on ambitious economic plans aimed at fostering substantial growth, setting the target growth rate between 3% and 3.5% for the year 2023. This announcement follows concerns over slow economic performance observed earlier, where the economy struggled to surpass growth rates of 2% in the initial quarters of the previous year.
During a meeting with officials from the Office of the National Economic and Social Development Council (NESDC) and the Bank of Thailand, Deputy Prime Minister and Finance Minister Pichai Chunhawan expressed optimism about the country’s economic future. “If Thailand can maintain momentum and improve the areas we are still lacking, I believe the economy this year can grow more than 3%,” he stated.
Despite this upbeat sentiment, the economic outlook is clouded by previous budgetary constraints. According to Pichai, the growth of the economy is expected to veer upwards following the delayed release of public funds, which has historically limited consumption and investment. “When the government budget can flow, the third and fourth quarters of last year showed growth of 3% and 3.2% respectively,” he noted.
Targeting economic revitalization, Prime Minister Phaethongthar Shinawatra has prioritized achieving the set economic targets, which are seen as challenging yet necessary for recovery. Highlighting the need to respond to limitations rather than relying solely on traditional financial stimulus methods, Pichai emphasized the importance of developing comprehensive master plans for nurturing economic activity.
“Setting the economic target this year at 3-3.5% is challenging,” Phaethongthar remarked, insisting on the necessity of multiple engaging factors to realize these goals. He advocates for strategic investments and the identification of Thailand’s strengths, pointing out the potential within the tourism sector. Efforts may involve enhancing national infrastructure, such as airport expansions in less trafficked cities to promote tourism.
Nonetheless, challenges linger, particularly within Thailand’s agricultural sector, which has faced serious competitive drawbacks on the global stage. “We are an agricultural country but have about five agricultural products which cannot compete globally,” Pichai elaborated, signaling the urgent need for structural reforms to bolster agricultural productivity and pricing.
To overcome these hurdles, the government is expected to provide analysis on agricultural consumption and exportation trends to formulate effective policies. For example, on February 26, the cabinet established a working group to examine the specific categories of rice consumed within the country and their pricing to guide future economic strategies.
With comprehensive plans on the horizon, the Thai government stands at the crossroads of revitalizing its economy through tourism enhancement, addressing agricultural weaknesses, and ensuring public funds flow effectively. The determined outlook for maintaining positive economic momentum signals hope, contingent on strategic action to nurture and stimulate growth across diverse sectors.