Thailand to introduce new stimulus measures
Thailand’s cabinet has approved several stimulus measures worth 70 billion baht (US$2.2 billion), which will aim to boost consumption and jobs as the country attempt to recover from the COVID-19 pandemic.
These include cash incentives for welfare cardholders and funds for members of a co-payment programme geared to low-income earners and small retailers, said Prime Minister Prayuth Chan-Ocha.
He added, “Both the programmes will help stimulate spending, increase purchasing power and reduce the cost of living.”
Thailand’s economy shrank by 12.2% in the second quarter of 2020, marking the worst contraction recorded in the country since the Asian financial crisis in 1998. Overall, the Thai economy is expected to contract by a record 8% in 2020, led by a slump in exports and tourism.
With tourism being a key economic contributor, the Thai cabinet has also passed a resolution to add three additional holidays in 2020 to encourage domestic travel.
The Tourism Authority of Thailand (TAT) estimates 70 million domestic trips to be made in 2020, contributing 418 billion baht (US$13 billion) in revenue, a decrease of 61% from 2019. International arrivals are expected at 6.7 million, with revenue of 332 billion baht (US$10 billion), down 65% from 2019.