Economic crisis in Thailand looming – poll

Most Thais perceive an urgent economic crisis in the country, according to Bloomberg citing a report by the National Institute of Development Administration.

Bloomberg’s coverage of the report reveals citizens’ mixed opinions on the government’s proposed $14 billion cash distribution programme.

The survey, conducted via phone between Jan. 22 and 24, among 1,310 Thai aged 18 and up, revealed that 63.5 per cent of the participants believe the struggling economy needs immediate attention, while 20.2 per cent acknowledge the crisis but don’t see the urgency in addressing it.

Last week, Prime Minister of Thailand Srettha Thavisin emphasised that Thailand’s economy, the second largest in Southeast Asia, is in crisis.

With an average annual growth of about 1.9 per cent over the past decade, it lags behind most regional counterparts, consequently, Thavisin and his government are advocating for additional stimulus measures and reductions in policy rates.

The government’s new digital wallet programme initially aimed to distribute 10,000 baht ($280) to around 55 million Thai adults.

However, budget concerns led to a reduction in the programme’s scope to 50 million people by excluding some high-income earners.

The survey showed that 34.7 per cent of respondents want to halt the cash handout project, 33.7 per cent support its implementation this year, and 18.6 per cent suggest it should target only vulnerable groups.

In the previous year, GDP growth reportedly decelerated to 1.8 per cent, despite a resurgence in tourism, a crucial sector of Thailand’s economy. Concurrently, a decline in consumer prices in the fourth quarter strengthened Srettha’s advocacy for rate cuts.