The economy of Thailand has been slowly advancing since 2014. Currently, in the second quarter of 2019, the economy is at its worst.
Thailand has been struggling with economy for quite a time. However, the emergence of the long-lasting US-China trade war worsens it.
The GDP of the country is 2.3%, smaller than the preceding. This is so because of heavy blow on export sectors.
Usually, the export sectors contribute approximately 40% to the country’s GDP. The trade war jeopardizes Thailand’s export business.
Also, the government has to lower the prediction of economic growth. Previously, the government predicted that the country’s GDP would grow by 3.3% to 3.8%. Due to the crisis, it becomes 2.7% to 3.3%.
This condition surely hinders its government’s plan. The plan, accordingly, is unable to well-execute due to the current crisis.
Also read: Grab Launches GrabTukTuk in Thailand
Actually, the government had planned to raise the minimum wages of workers in this Land of White Elephant. This is so important because the government believes that it will help eradicate the wealth gap between the rich and the poor.
With that being said, the government might delay the fulfillment of this plan as they are planning another strategy to combat their current weakness.
A Countermeasure(s)
Due to the trade war between China and the US, Thailand’s economy becomes one of its victims. However, the government plans to fight against the situation.
In so doing, the country is planning to issue an economic stimulus package. The aim is to help low income workers such as farmers and, consequentially, elevate the country’s economy.
Thailand’s Finance Minister, Uttama Savanayana, disclosed an economic stimulus package worth of 316 billion baht (US$ 10.2 billion) on Friday as reported by Nikkei Asian Review.
The stimulus package will amount to 1.9% of the country’s GDP. To elaborate the funding, the government will issue 109 billion baht. Meanwhile, the rest of them will be from loans.
“The ministry presents urgent measures with the aim of stimulating domestic consumption and money circulation among the public as much as possible,” said the minister in a Facebook post.
Also read: Thailand Queuing App Targets Malaysia