The Thai government has launched the first phase of its 2024 economic stimulus program, distributing a 10,000-baht stipend to vulnerable groups. This initiative, amounting to 145 billion baht, is designed to have an immediate economic impact by allowing recipients to spend the funds on essential goods and local services.
Dr. Thanavath Phonvichai, President of the University of the Thai Chamber of Commerce (UTCC), highlighted that surveys conducted by the UTCC and the government indicate most recipients plan to use the money for daily necessities, with some investing in tools or settling informal debts. He predicts that the stimulus will circulate through the economy two to three times, with the first wave of spending benefiting local markets and subsequent rounds aiding local businesses and larger suppliers. This “multiplier effect” is expected to fuel economic activity, particularly during the festive seasons of Loy Krathong and New Year, further boosting tourism in the fourth quarter.
Dr. Thanavath projects that the stimulus will contribute to GDP growth of 3.8-4.3% in the final quarter of the year, raising total growth to 2.6-2.8%—a figure that surpasses earlier forecasts. He also encouraged the government to monitor key indicators such as fuel consumption, hotel occupancy, and VAT collections to evaluate the program’s success. Additionally, he recommended implementing further stimulus measures, such as tax incentives, to increase overall growth to around 3%.
Meanwhile, Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, praised the cash handout’s effectiveness in spurring economic activity, particularly in regions affected by flooding. He also supported the call for additional measures during major festivals to maintain the country’s economic momentum.
The expert consensus underscores the importance of the 10,000-baht handout in revitalizing local economies and emphasizes the necessity of continued government action to sustain long-term growth.
