Thai Prime Minister Announces $13.7 Billion Stimulus Package

Thailand's Prime Minister Srettha Thavisin has disclosed details of a government plan aimed at invigorating the economy through digital cash handouts during a news conference, according to the Associated Press (AP).

Srettha projected that the stimulus and consequent consumption would bolster gross domestic product (GDP) growth by 1.2 to 1.6 percentage points. I Photo: เศรษฐา ทวีสิน - Srettha Thavisin Facebook

The plan entails providing 10,000 baht ($275) digital cash handouts to approximately 50 million Thai citizens for spending at local businesses.

The initiative, amounting to 500 billion baht ($13.7 billion), will primarily be funded from the 2024 and 2025 fiscal budgets and is slated for implementation in the last quarter of the year.

Srettha projected that the stimulus and consequent consumption would bolster gross domestic product (GDP) growth by 1.2 to 1.6 percentage points.

Thailand's year-on-year GDP growth was estimated at 1.5% by the World Bank in December. A portion of the funding will be sourced from the state's Bank for Agriculture and Agricultural Cooperatives to cover payouts to approximately 17 million farmers.

However, digital purchases will be restricted to recipients' own districts and prohibited for items such as oil, services, and online purchases. Srettha described the project as a "life-changing policy for the people."

Thailand faces relatively high levels of household debt, and elevated interest rates tend to discourage spending and investment.