On September 4, 2652, Mrs. Narumol Pinyo Sinwattana, spokesperson for the Prime Minister's Office, revealed after a Cabinet meeting that Deputy Prime Minister Somkid Jatusripitak had explained the current economic situation to the Cabinet and confirmed that the Thai economy is not in recession. Compared to the same period last year or the previous quarter, the Thai economy is still able to expand, although at a slower growth rate than expected.

          “Mr. Somkid stated that he has mentioned several times that the economy is not in recession because recession means negative growth, not expansion. In reality, it is still growing positively, just at a rate lower than the target. However, it is still growing at a slower pace, so I would like to emphasize that we need to communicate this to the public and confirm that the Thai economy is not in recession; it is still growing,” said Mrs. Narumol.

          Additionally, during the National Economic and Social Development Council (NESDC) meeting, a report on the economic situation was presented to Prime Minister Gen. Prayuth Chan-o-cha. The consumer spending index has increased, government spending is becoming more positive, and the tourism sector is starting to recover well, with Chinese tourists returning positively. However, the private investment index remains relatively low.

          Mr. Somkid emphasized in the Cabinet meeting that there needs to be an accelerated effort to build confidence among the private sector to encourage investment in the country. The economic stability is expected to be positive overall, with a high current account surplus. However, caution is advised regarding this surplus, as it indicates low imports, reflecting that private investment is still not high. Therefore, efforts must be made to boost private sector confidence and increase investment. Meanwhile, the situation of the Thai baht needs close monitoring, as it continues to strengthen, which could impact exports and the country's GDP growth. Discussions have already taken place with the Governor of the Bank of Thailand (BoT), but any measures to manage or maintain the baht's value must be approached with caution, as the U.S. is monitoring countries that intervene in their currency for trade benefits.

          Furthermore, he instructed the Budget Bureau to expedite the disbursement of funds for previously implemented economic stimulus measures, including income guarantees and support for production factors, to ensure simultaneous progress. He confirmed that economic stimulus measures are necessary and must be implemented to support economic growth from the grassroots level, hoping to stimulate the Thai economy in the fourth quarter for better growth. In the long term, the government continues to prioritize and work on economic restructuring.

          Mr. Uttama Savanayana, Minister of Finance, confirmed that the economy is not in recession and can still grow. However, the government is not complacent and has previously implemented a 316 billion baht economic stimulus package, which is currently awaiting evaluation.

          There has not yet been a proposal to the Cabinet to consider extending the 7% value-added tax (VAT) reduction measure, which is set to expire on September 30. If the Cabinet does not extend the measure, the VAT rate will revert to the normal level of 10%. The Minister of Finance confirmed that if ready, a proposal will be presented to the Cabinet for consideration immediately.

          Mr. Sonthirat Sonthijirawong, Minister of Energy, stated that the Cabinet has assigned relevant economic agencies to accelerate and stimulate grassroots economic activities, including supporting the agricultural sector and tourism, which are crucial for driving the economy.

 

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