9th July 2024, Bangkok
This time last year, Thais were hopeful. They thought Pheu Thai’s return would ease their troubles. The party promised to reverse declining consumer purchasing power. They aimed to reduce high household debt and slow down the continuous economic decline. Pheu Thai had focused on economic policies during their campaign. They aimed for 5% annual growth. They promised a 500-billion-baht economic stimulus with a 10,000-baht digital wallet scheme. They planned to reduce living costs and raise the minimum wage to 600 baht per day within four years.
Srettha Thavisin led the government starting in September 2023. He also served as the Minister of Finance. But after 10 months, there is little progress on economic issues. Srettha’s focus on field visits and trips abroad delayed economic actions. He reshuffled the cabinet, appointing Pichai Chunhavajira as Deputy Prime Minister and Minister of Finance. An economic cabinet was formed to drive policies.
The government’s economic performance in its first year is poor. Economic indicators show missed targets. GDP in the first quarter grew by only 1.5%, the lowest in ASEAN. Agencies have 9thdowngraded GDP forecasts for Thailand to 2.4-2.5%. Slow government spending caused low growth. Delays in the 2024 budget, effective only in May, contributed to this. The delay was partly due to the digital wallet scheme. The policy faced financial and legal challenges. It also required complex preparations like registration and large-scale transaction systems.