Ministry eyes gain of greater than 3%
text size

Ministry eyes gain of greater than 3%

Listen to this article
Play
Pause
Julapun Amornvivat
Julapun Amornvivat

The Finance Ministry expects Thai GDP to grow by more than 3% this year, supported by robust expansion in the first quarter.

According to Deputy Finance Minister Julapun Amornvivat, the first quarter this year should record growth exceeding the first quarter last year as a result of government policies.

If the economy performs well in the first quarter, full-year growth should exceed 3%, he said.

"Last year, Thailand's economy performed poorly in the first quarter, growing over 1% due largely to delays in the 2024 budget and weak consumption," said Mr Julapun.

"However, the first quarter this year looks promising because we have maintained momentum through initiatives like the 1,000 baht per rai subsidy for farmers, the Easy E-Receipt tax rebate project, and the second phase of the digital wallet cash handout. I believe first-quarter figures will reflect positive growth."

Regarding whether first-quarter GDP growth could surpass the fourth quarter last year, when the figure expanded by more than 4%, he said first-quarter GDP rarely outpaces fourth-quarter figures.

The specific growth rate for this quarter has not been assessed, said Mr Julapun.

Despite the optimistic outlook, he acknowledged potential risks in 2025, particularly stemming from shifts in US policies.

All ministries, including the Finance Ministry, are evaluating potential impacts on Thailand's economy, said Mr Julapun.

Regarding the second phase of the 10,000-baht cash handout, he confirmed it remains on schedule.

Registered Thais aged 60 and older can check their eligibility on the government's Tang Rat app from Jan 22 and will receive payments through the PromptPay system linked to their national ID cards on Jan 27.

If any recipients miss the payment, the government will make up to three additional payment attempts.

According to Mr Julapun, the government verified the eligibility criteria and identified 3.02 million elderly individuals eligible to receive the 10,000 baht payment this round, with an allocated budget of more than 30 billion baht.

He said the third phase of the cash handout is expected to commence in April. As with previous phases, eligible individuals will receive 10,000 baht each. The government set aside 187 billion baht in the 2025 budget for this initiative.

Once the 30 billion baht has been spent on phase two, 157 billion remains for the third phase, said Mr Julapun.

For individuals who do not own a smartphone, the government insists they are still eligible to apply, with registration opening soon.

In a related development, Deputy Finance Minister Paopoom Rojanasakul said the ministry is preparing to assess the potential impacts of policies under US President Donald Trump. The ministry plans to test various scenarios to evaluate the potential effects on revenue collection and other policies.

However, it is too early to determine the implications, he said.

Do you like the content of this article?
COMMENT (5)