Prime Minister Srettha Thavisin said on Wednesday he believes Thailand's economy is in crisis, adding the government would roll out stimulus measures in addition to handouts to boost growth.
"I confirm that the economy is not doing well and is in crisis," Mr Srettha, also the finance minister, told reporters, adding it was fine if the Bank of Thailand (BoT) disagreed with him.
His comments come after BoT Governor Sethaput Suthiwartnarueput told Reuters on Tuesday that government stimulus measures would not fix structural issues plaguing Southeast Asia's second-biggest economy.
The government this week slashed 2024's growth projections to 2.8% from an earlier forecast of 3.2% on weaker exports and foreign tourist arrivals.
Thailand's growth has been slower than expected but the economy is not in crisis as portrayed by the government, said Mr Sethaput, who has come under fire from the premier for not cutting interest rates despite low inflation.
Bank of Thailand (BoT) Governor Sethaput Suthiwartnarueput, left, and Prime Minister Srettha Thavisin discuss economic and financial issues at Government House in October 2023. (Government House photo)
Mr Srettha, a former property tycoon turned prime minister, has told the central bank chief that high rates were hurting businesses and has urged the BoT to lower rates, which are at a decade-high of 2.5%.
His Pheu Thai-led coalition government has promised a slew of stimulus measures to revive the economy, including a 500-billion-baht (US$13.9-billion) handout programme targeting 50 million Thais.
"Reducing interest rates is a central bank matter ... but there will be more policies in addition to the digital wallet."
