Thailand’s economy grew at a slower pace in the third quarter, supporting the case for the new government to proceed with its planned $14 billion cash handout program.
Gross domestic product in the three months through September rose 1.5% from a year earlier, the National Economic and Social Development Council said Monday. That compares with the 2.2% median estimate in a Bloomberg survey and a previously reported 1.8% growth in the second quarter.
The economy expanded 0.8% quarter-on-quarter, against a median estimate of a 1.3% growth.
Even as tourism — which is a key plank of Southeast Asia’s second-largest economy — recovered and buoyed domestic activity, growth still lagged many of its neighbors. This has prompted the administration of Prime Minister Srettha Thavisin to push for a stimulus plan that’s being opposed by some central bankers and economists. Srettha is aiming to accelerate annual growth, which has averaged below 2% in the past decade, to 5%.
The centerpiece of Srettha’s strategy to lift the economy out of the cycle of low growth is a digital wallet program that will see 50 million Thais 16 years old and above receive a one-time handout of 10,000 baht ($284) starting May 2024.
That the cash aid plan to boost spending will be funded by borrowing that may widen the fiscal deficit and stoke inflation had triggered a backlash, including from Thailand’s opposition party.
--With assistance from Tomoko Sato, Anuchit Nguyen, Patpicha Tanakasempipat and Cecilia Yap.
