Thailand’s Economic Stimulus Plan

Date: Wednesday

Source: Reuters

Thailand may require at least 500 billion baht (approximately $15 billion) for economic stimulus to mitigate the effects of U.S. tariffs, according to Finance Minister Pichai Chunhavajira.

The proposed measures aim to boost domestic consumption and investment while offering soft loans. Thailand, one of the Southeast Asian countries most impacted by U.S. President Donald Trump’s tariffs, is facing a 36% tariff if negotiations for a reduction are not concluded before a global moratorium expires in July.

Negotiations with the U.S. have been postponed due to requests from Washington for Bangkok to review significant issues. The Thai government is closely monitoring the situation and is prepared to implement measures to stimulate the economy and sustain growth levels, Pichai stated.

Ongoing discussions with relevant agencies like the National Economic and Social Development Council and the Bank of Thailand are focusing on these measures, which will be funded from various sources.

“The economic stimulus package must be substantial enough to generate momentum,” Pichai emphasized. When the 36% tariff was announced earlier this month, he indicated it could reduce growth in Southeast Asia’s second-largest economy by 1 percentage point. Last year, the economy grew by just 2.5%, trailing behind regional counterparts.

*Exchange Rate: $1 = 33.39 baht