Bank of Thailand gauges effect of handout

 

The Bank of Thailand is measuring the effect of the flyer

The Bank of Thailand expects the Pheu Thai Party's proposed 10,000 baht digital handout scheme to require a total budget of around 500 billion baht, adding 3% to GDP growth next year. The central bank anticipates that the contribution to GDP will depend on the economic multiplier, said Sakkapop Panyanukul, director of the bank's economic and policy department. The contribution of 3% of GDP is based on the Bank of Thailand using a one-time cash transfer multiplier model. The regulator wants to wait for more details on the scheme before making a definitive forecast, he said.

Under the scheme, citizens aged 16 and above receive a 10,000 baht digital wallet to spend within six months at shops within a four kilometer radius of their residence. The party said the program is a one-time donation aimed at accelerating economic activity and increasing GDP growth to 5%. Mr Sakkapop said that while the consumer confidence index for August was lower than July due to concerns over the formation of a new government, the index should improve over the next three months after the administration is formed.

The central bank is waiting for the new government to present its economic policies before making predictions about the Thai economy next year. The bank's latest projection for 2024 was for GDP growth of 3.8%. He said the central bank may cut its growth forecast for 2023 from 3.6%, mainly because of slower-than-expected expansion in foreign demand. Due to the global economic slowdown and China's slow recovery, Thai exports are expected to decline this year. Thailand's GDP growth in the second quarter of this year was 1.8%, lower than the central bank's estimate.

However, domestic demand is showing positive momentum and could support Thailand's economic expansion along with the tourism sector, Sakkapop said. Tourism is still a key fuel supporting Thailand's economy, with 15.4 million foreign arrivals from January to July. "While foreign tourist arrivals have continued to grow, spending per person is lower than expected as they are mostly short trips," he said. The central bank announced yesterday that Thailand's economic and monetary conditions for July indicated continued recovery.

Private spending rose on both consumption and investment, with consumption benefiting from the long holiday in July. Private consumption for the month rose by 7.3% year-on-year, from 5.5% in the previous month. Mr. Sakkapop said the number of foreign tourists continued to rise after seasonal adjustment, supporting activities in the services sector. Foreign arrivals rose to 2.49 million in July from 2.24 million in the previous month, attributed mainly to tourists from China, Malaysia, Europe and Russia.

However, the value of exports of non-gold goods fell 4.5% year-on-year in July, easing from a 5.9% decline in June, as electronics and agricultural products fell partly due to weaker demand from trading partners. Kiatnakin Phatra Securities Research cut its outlook for Thailand's growth this year to 2.8% from 3.3% after the second-quarter growth rate was lower than expected. In addition, the research arm revised its growth projection for 2024 from 3.6% to 3.3% due to a higher risk of external factors that could dampen exports and the tourism sector. Provided by SyndiGate Media Inc.

The Bank of Thailand, a key player in the country's financial scene, is closely monitoring the effects of government handouts on the economy. As economic stability and growth are paramount concerns, these assessments are critical. In this article, we will delve into the Bank of Thailand's assessment of the impact of government subsidies and explore the relative keywords associated with this important economic analysis.

Government gifts, often in the form of financial assistance, subsidies or aid packages, are designed to stimulate economic activity, support individuals and businesses, and increase overall economic well-being. These initiatives are especially important in times of crisis such as the COVID-19 pandemic.

Bank of Thailand: As the authoritative institution responsible for monetary policy and financial stability in Thailand, the Bank of Thailand plays a central role in assessing the impact of government subsidies. Its analyzes provide valuable insights for policymakers and the public. Evaluating the economic consequences of government benefits is essential. It includes an assessment of how these financial injections affect key economic indicators such as GDP growth, unemployment rates and inflation.

This keyword reflects fiscal measures taken by governments to support economic activity. In the context of Thailand, the government has implemented various stimulus packages to mitigate the effects of the economic downturn. Government subsidies are often intended to boost consumer spending, a vital part of economic growth. An essential part of the evaluation is the analysis of changes in consumer behavior in response to the documents. Government support can also be extended to businesses through grants, loans or tax breaks. The central point is the assessment of the effectiveness of these measures in maintaining and reviving businesses.

The Bank of Thailand's analysis considers how government donations are aligned with the country's fiscal policy objectives. The key issue is balancing economic stability and fiscal responsibility. The central bank can adjust interest rates or implement other monetary policy tools in response to the impact of government handouts on inflation and overall economic conditions.

 Assessing how government contributions affect income distribution is essential. An important aspect of the analysis is the evaluation of whether these initiatives reach vulnerable population groups and reduce income inequality. The Bank of Thailand takes a multifaceted approach to measuring the effects of government stimulus. This includes data collection, economic modeling and scenario analysis. Through rigorous research, it strives to provide accurate assessments that inform policymaking.

The Bank of Thailand's ongoing evaluation of government benefits and their economic impact is critical to the nation's prosperity. Understanding the role of government stimulus measures is essential when navigating economic challenges and opportunities. These assessments ensure that government policies are aligned with economic objectives and benefit the wider population.

In summary, the Bank of Thailand's careful analysis of government handouts and their impact on the economy highlights the importance of data-driven policymaking. These assessments help policymakers make informed decisions to promote economic stability and growth in Thailand.