Inflation remains too low and the baht is excessively strong, which is not conducive to economic expansion, says Finance Minister Pichai Chunhavajira.
Speaking on Thursday at the Money Expo themed "Digital Finance for All", Mr Pichai vowed to revive the "Easy E-Receipt" initiative to stimulate spending at the beginning of next year.
He also commented on the Monetary Policy Committee's (MPC) decision on Wednesday to maintain the policy interest rate at 2.25%, stating that keeping inflation at a reasonable level is more beneficial to the economy than maintaining it at a relatively low level.
The MPC projects headline inflation of 0.4% this year and 1.1% next year.
Mr Pichai said he would like headline inflation to reach 2%, the midpoint of the regulator's target range of 1-3%, which he deemed suitable for the current economy.
He said the Finance Ministry is preparing to propose to the cabinet a renewal of the Easy E-Receipt stimulus measure that allows taxpayers to deduct up to 50,000 baht in personal income tax for goods purchases, with implementation expected by January.
Mr Pichai added he would like to see the baht weaken from its current level, citing many analysts that believe the currency still has room to depreciate further.
"To determine whether the Thai currency is competitive with other countries' currencies, we need to consider which global markets Thailand exports to and what measures our competitors are taking to manage their exchange rates. Exchange rates should be analysed over the long term, taking into account their evolution," he said.
Mr Pichai said the government is promoting the digital economy, with virtual bank licensing slated for approval in the coming year.
These banks do not require physical branches to provide financial services to people.
The interest rates are determined based on the risk profile of each customer, rather than applying a uniform rate for everyone, he said.
Mr Pichai said the digital economy improves the flow of the financial system, preventing it from being locked up.
For example, he said in the current system buying government and corporate bonds requires a large amount of money, so most buyers are large investors. However, in the digital economy retail buyers can participate more easily because they can purchase as little as 0.001 units.
Mr Pichai forecasts the economy to grow by 4% in the fourth quarter, resulting in 2024 GDP growth of 2.7-2.8%, higher than the 1.9% posted last year.
For 2025, he said the economy is estimated to grow by 3-3.5%, driven by the tourism sector, which is forecast to welcome 39.9 million foreign arrivals next year, higher than the 36 million expected this year.
Other supporting factors include increased consumption, export growth and investments, particularly those promoted by the Board of Investment (BoI), said Mr Pichai.
Companies applying for investment promotion from the BoI today will make investments over the next three years, he said.
The Finance Ministry plans to continue to address issues that hinder investment in the Eastern Economic Corridor, said Mr Pichai.
"When the economy expands, liquidity that was previously held as cash will flow out to be invested. I believe hope is growing as the economic picture becomes clearer," he said.