BANGKOK (Reuters) – Thailand is targeting economic growth of 3.5% this year, supported by tourism, foreign investment and government stimulus, a deputy finance minister said on Friday.
“We are not satisfied with 3.0% growth … if we build efficiency and close the gaps, our target is 3.5%. We can take it there,” Julapun Amornvivat told a business forum.
He said GDP growth for 2024 was estimated to have been 2.7% to 2.8%. Official data is due on Feb 17.
The next phase of government’s cash handout programme is slated to start in the next quarter with another 150 billion baht ($4.5 billion) to be distributed.
“This is a huge sum of money directly injected into the economy,” Julapun said.
The “digital wallet” handout scheme provides 10,000 baht ($300) each to an estimated 45 million people to spend in their localities within six months. So far about 17.5 million people have received payments since it started last September.
Other government measures to spur growth include an initiative to provide public housing for low-income earners and expanding universal healthcare.
Julapun said the government was expecting foreign investment in new industries, which would also help growth.
Thailand is drafting a strategic plan to attract investment in the semiconductor and printed circuit board industries amid U.S. President Donald Trump’s renewed trade war with China.
“When a giant moves, the entire house shakes,” he said, referring to Trump’s return to office.
($1 = 33.66 baht)
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; Writing by Chayut Setboonsarng; Editing by Martin Petty and John Mair)
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