Picture courtesy of Surachai Piraksa
Thailand’s GDP forecast has been upgraded for this year and next to 2.8% and 3%, respectively, due to the government’s cash handout boosting the economy.
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Thailand’s GDP forecast has been upgraded for this year and next to 2.8% and 3%, respectively, due to the government’s cash handout boosting the economy. However, analysts warn of an economic cliff in 2026 if no new growth engines are introduced.
Kiatnakin Phatra Research (KKP) and BofA Global Research have both raised their Thai GDP outlooks for 2024 from 2.6% to 2.8% and for next year from 2.8% to 3.0%. The analysts attribute this to the government’s 10,000-baht (US$300) cash handouts, which are expected to provide a temporary lift to the Thai economy.
KKP stated that the revised GDP forecast reflects a short-term economic recovery driven by cash handouts to low-income earners in the fourth quarter. An additional stimulus budget has also been set aside for 2025.
The short-term benefits of the handout are significant, with 142 billion…