Economists and financial experts project Thailand's economy to grow at least 8% in 2024, emphasizing the importance of effective fiscal policies and strategies for sustainable expansion.
Recent discussions among finance professionals highlight the significance of stringent fiscal policies to achieve rapid and sustainable economic growth. Nguyen Thanh Hien, representative of the State Bank of Vietnam, stated, "To achieve sustainable and rapid growth, stringent fiscal policies and efficient spending are necessary." Such policies aim to address the challenges faced by many businesses, particularly small and medium-sized enterprises (SMEs) struggling to access sufficient capital.
The current economic climate poses concerns, especially as SMEs often find it challenging to secure loans at favorable rates. Nguyen Duc Lai, Deputy Director of the State Bank of Ho Chi Minh City, pointed out, "If the government sets the GDP target at 10%, credit will need to increase by 20%." This increase is necessary for businesses to invest and expand, ensuring they can contribute effectively to the national economy.
According to economic forecasts, Thailand's growth will not only rely on consumer spending but also significantly on investment and exports. The government is urged to adapt its fiscal strategies to maintain this momentum. Ensuring lower interest rates and offering incentives for businesses to invest are key strategies emphasized during the discussions.
The banking sector must proactively address the needs for capital among businesses, focusing on providing loans with ideal conditions for growth. "The banking sector's primary interest must focus on meeting funding needs at favorable interest rates," said Nguyen Duc Lai, encapsulating the sentiment of many economists concerned with the current lending environment.
Looking forward, the Thai government is expected to implement comprehensive policies aimed at raising investment rates, improving infrastructure, and enhancing human resources. By tackling these areas, experts believe the country can sustain the projected growth rates and meet its economic targets.
An accelerated investment plan, amounting to approximately $174 billion, is anticipated for various sectors, particularly where private investments play a major role. Fostering collaborations between private and public sectors is deemed pivotal to realizing such ambitious objectives.
Research indicates significant opportunities remain, especially as international markets begin to open following recent disruptions. Maintaining Thailand's appeal to foreign investors is, hence, of utmost importance. The direct foreign investment (FDI) is expected to play a considerable role within the GDP growth narrative, enhancing Thailand's international economic standing.
Nevertheless, potential challenges loom, including the global economic situation and supply chain issues. The financial community is cautioned to remain vigilant about geopolitical tensions and their impacts on market dynamics.
Thailand's focus on innovative technologies and fostering new industries is expected to be beneficial, particularly if the right financial frameworks support these endeavors. The use of technology to streamline processes and reduce costs can increase efficiency across many sectors, adding to the overall productivity of the economy.
Overall, as Thailand ambles toward its projected economic growth, the importance of cohesive policies can’t be overstated. With projections sitting around 8% growth, the enthusiasm of both government and businesses could dictate the success of achieving these financial milestones.
With various strategies set for implementation, the country's potential for economic expansion remains firmly within reach. The interplay between fiscal policies, investment opportunities, and access to credit will be the principal determinants as Thailand navigates through 2024 and beyond.