BRITISH INTERNATIONAL SCHOOL, PHUKET
The Phuket News Novosti Phuket Khao Phuket

Login | Create Account | Search


Govt to inject B1trn to stabilize economy in wake of Omicron variant

Govt to inject B1trn to stabilize economy in wake of Omicron variant

BANGKOK: Finance Minister Arkhom Termpittayapaisith has announced that the government will inject around B1 trillion into the economy next year to cushion against any volatility that may be caused by the Omicron variant of COVID-19.

economicsCOVID-19
By Bangkok Post

Sunday 5 December 2021, 11:24AM


Finance Minister Arkhom Termpittayapaisith says the government is trying to maintain a balance between keeping the economy running and containing the virus. Photo: Chanat Katanyu / Bangkok Post

Finance Minister Arkhom Termpittayapaisith says the government is trying to maintain a balance between keeping the economy running and containing the virus. Photo: Chanat Katanyu / Bangkok Post

He was speaking on the sidelines of the Bangkok Post International Forum 2021, held under the theme “Unleashing the Future: A Glimpse into 2022 and Beyond” on Thursday (Dec 2), reports the Bangkok Post.

About B600 billion will be drawn from state investment funds for the 2022 fiscal year, while about B300bn will be taken out of state enterprises’ investment funds, he said.

The government also has another B250bn left from the B500bn it borrowed using the second emergency loan decree to mitigate the pandemic’s impact on the economy, he said.

The government will speed up the disbursement of the funds next year, he said.

Mr Arkhom said the government is trying to maintain a balance between keeping the economy running and taking precautions to contain the spread of the virus.

In his keynote speech, Mr Arkhom said the economy is improving as the COVID-19 situation in Thailand continues to ease.

However, he said uncertainties remain in the wake of the Omicron strain’s emergence, saying Thailand must remain cautiously optimistic.

The government, he said, is trying its utmost to resuscitate the economy and prepare for a post-COVID world.

He said that since last year, the economy has contracted by 6.1%, the first economic contraction in 11 years since the US subprime mortgage crisis in 2009.

This year, the economy is showing signs of recovery, with the country’s GDP contracting only by 0.3% in the third quarter of this year, which is less than expected, he said.

The economy has been bolstered by exports and government measures aimed at boosting people’s purchasing power and easing the rising cost of living, he said.

He expects the economy to recover and show positive growth in the fourth quarter of this year, as the COVID-19 situation in Thailand continues to ease with the national vaccination drive making substantial progress.

This enabled the government to relax its virus containment measures and reopen the country on Nov 1, he said.

This year, the minister said, the Finance Ministry forecast the economy will expand by 1%.

Next year, the economy is expected to pick up, growing by up to 4% driven by increasing foreign tourist arrivals, in turn enabled by the gradual decline in COVID-19 cases and the country’s reopening, he said.

Furthermore, exports are likely to continue growing and will be the key driver of Thailand’s economic growth next year, he said.

However, there are some risks that need to be closely monitored, such as the volatile crude oil prices and the risks posed by the Omicron variant.

Thailand has learned how to manage COVID-19 from experience and the nation will be able to mitigate the impact of the new virus variant, he said.

Talking about crude oil price volatility, the minister said it is only a short-term impact from COVID-19, and the situation will ultimately improve.

Moreover, Thailand has also started to move away from fossil fuels, which reduces its exposure to price volatility, Mr Arkhom said.

To ensure Thailand’s economy can recover quickly, the main focus should be on promoting inclusive growth, he said.

The government is also preparing to restructure the economy to boost Thailand’s competitiveness in the global market, with a focus on growth that is more sustainable and environmentally friendly, Mr Arkhom added.

The government’s approaches to economic restructuring include the promotion of the bio-circular-green economy principles, acceleration of investments in large-scale infrastructure projects, and the promotion of a digital economy and the capital market, he added.

Mr Arkhom said the Finance Ministry will work closely with the Bank of Thailand to ensure monetary and fiscal policies are in sync, in order to create a favourable environment for a quick economic recovery.

Accommodative economic policies are necessary to ensure a robust recovery, Mr Arkhom noted.

Comment on this story

* Please login to comment. If you do not have an account please register below by simply entering a username, password and email address. You can still leave your comment below at the same time.

CAPTCHA

Kurt | 05 December 2021 - 16:54:00

What a load of nonsense. Since 2015 this Government doesn't work well economy wise. The figures the finance minister talks about are soft as butter. Just wet finger work. And better stop talking about tourism. Next month this 'tourist high season' is over again. The CoE and Thailand Pass were great barriers , blocked a lot of tourists coming to Thailand.

 

Have a news tip-off? Click here

 

Phuket community
Test & Go for overseas arrivals to be restored, fine-tuned

Thailand will win this year the wolrd championship of ping pong... Which tourists will stay the firs...(Read More)


Crocodile sighted off Phuket’s Bang Tao Beach

It’s looking for people without masks seems it endemic in Cherng Talay ...(Read More)


Phuket face mask campaign targeting tourists begins

what a farse... and so how many tourist they found without mask? what did they do to them? mistery.....(Read More)


Phuket vows tough action on unmasked tourists

Start fining the management of establishments that are allowing patrons to ignore the rules. Third s...(Read More)


Phuket face mask campaign targeting tourists begins

Enforce it the GROCERY STORES, please. If we see people without masks, what are we to do ? Arrange...(Read More)


Phuket face mask campaign targeting tourists begins

Very mis-leading scare-mongering headline, In the story itself it clearly states locals and tourist...(Read More)


Phuket face mask campaign targeting tourists begins

Why don't they patrol the shopping malls and stores. Bangla Road is too easy and advanced warni...(Read More)


Patong Police to crack down on face masks

What about Fitness centers. People come with a mask on, take it off in the changing room and are abs...(Read More)


Phuket vows tough action on unmasked tourists

WHO and in this order says. Get vaccinated, keep your distance from others and wear a mask. 2 years ...(Read More)


Test & Go for overseas arrivals to be restored, fine-tuned

Who would have thought that Kurt wouldn't approve? Wonders never cease!!...(Read More)