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Thailand sees more than 3% growth in 2025, plans more stimulus

Published 10/18/2024, 01:47 AM
Updated 10/18/2024, 01:51 AM
© Reuters. FILE PHOTO: Bangkok's skyline photographed during sunset in Bangkok, Thailand, January 4, 2023. REUTERS/Athit Perawongmetha/File Photo

BANGKOK (Reuters) - Thailand's economy could grow by 3% this year and by more than that in 2025, driven by the government's stimulus measures to be introduced from late this year to maintain growth momentum, a deputy finance minister said on Friday.

"This year, we still hope to get 3% growth, even though the latest forecast is 2.7%, but next year will definitely be more than 3%," Julapun Amornvivat told reporters.

His comments came two days after the central bank unexpectedly cut its key interest rate by 25 basis points to 2.25%, following repeated calls by the government to reduce borrowing costs to help growth.

The first rate reduction since 2020 is putting pressure on the government to boost Southeast Asia's second-largest economy, which expanded 2.3% year-on-year in the second quarter. Last year's growth was just 1.9%.

Julapun said the government expected to meet to discuss economic measures by early next month, which would include tax breaks for flood-hit tourism areas and measures to stimulate consumption.

The second phase of the government's signature "digital wallet" stimulus programme would move ahead, he added.

In late September, the government rolled out the first phase of the flagship $14 billion stimulus handout scheme, which aims to deliver 10,000 baht ($302) each to around 45 million people.

© Reuters. FILE PHOTO: Bangkok's skyline photographed during sunset in Bangkok, Thailand, January 4, 2023. REUTERS/Athit Perawongmetha/File Photo

The economy will also be supported by foreign investment and accelerated government budget disbursement, Julapun said.

($1 = 33.13 baht)

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