The economy is not safe from the risk of a recession amid slow GDP growth, high household debt and burgeoning bad loans, Prime Minister Srettha Thavisin said on Wednesday.
Mr Srettha, who is on an official trip to Japan, said he would chair an urgent meeting of ministers in charge of the economy and related agencies on Monday to brainstorm ideas to revitalise the economy.
The special meetings will be held weekly for the foreseeable future, he said, stressing the need to come up with new ideas.
The move comes after the National Economic and Social Development Council (NESDC) reported economic growth of just 1.5% year-on-year for the first three months.
The state planning agency now expects gross domestic product (GDP) growth of between 2% and 3% for the year, slightly lower than its previous forecast of 2.2% to 3.2%. Last year’s growth was 1.9%.
The downgrade reflects higher levels of external risk, especially trade protectionism that is intensifying, geopolitical conflicts and increasing volatility in the global economy, the NESDC said.
Thailand’s growth in the first quarter trailed that of six other members of the Association of Southeast Asian Nations (Asean). The Philippines and Vietnam led the pack, at 5.7% each, followed by Indonesia (5.1%), Malaysia (4.2%) and Singapore (2.7%), according to NESDC figures.
“GDP grew by only 1.5%. Without the service and tourism sectors as cushions, we would now be at risk of a recession,” said Mr Srettha. “There is also credit card debt, bad debt and household debt [that needs to be addressed].”
Asked if the government was considering any short-term measures to stimulate the economy, he said: “That’s why the meeting of economic ministers will be held. But the meeting will not come up with any surprise project at this point
“From now on, such meetings will be held every week. I want to listen to ideas from everyone including those in international trade, the agricultural sector and lawyers."
Government spokesman Chai Wacharonke said the meetings would be held regularly on Mondays.
The government’s 500-billion-baht digital wallet handout is one of the important measures to stimulate the economy in the short term, the spokesman said.
On Tuesday, the cabinet approved a plan to increase the budget for the 2024 fiscal year, worth 3.48 trillion baht, to help finance the scheme.
Finance Minister Pichai Chunhavajira said the additional amount would be decided this month but should not exceed the 122 billion baht indicated earlier by the Budget Bureau, which would increase the 2024 budget to 3.6 trillion baht.