As of December 9, 2024, Thailand's economy is showing signs of recovery, prompting experts to advise the government to limit its economic stimulus measures. The Thailand Development Research Institute (TDRI) has recommended against large-scale interventions, suggesting that the current growth rate of 2.6% to 2.8% is nearing the country's potential of 3%. Nonarit Bisonyabut, a prominent economist, likened the reliance on stimulus to addiction, advocating for smaller-scale projects with budgets ranging from 10 to 20 billion baht instead of extensive measures like the controversial 10,000-baht cash handout, which he deemed excessive. [47c845ef]
The TDRI's stance comes amid concerns about external factors that could impact Thailand's economic stability, including the so-called 'Trump effect' and the health of China's economy. These global influences underscore the necessity for Thailand to adapt to changing international dynamics and to invest in new technologies to sustain growth. [47c845ef]
In parallel, the Thai property sector is grappling with its own challenges, as reported earlier. The total sales of new and resale residences in the first half of 2024 fell by 9% year-on-year, leading to an oversupply of 313,789 unsold residential units valued at approximately 1.7 trillion baht. The Bank of Thailand has responded to these economic pressures by cutting the policy interest rate to 2.25% in an effort to stimulate activity. [bc1908ff]
While the tourism sector is rebounding, the property market's struggles highlight the uneven nature of Thailand's economic recovery. Stakeholders are closely monitoring these developments as they navigate the complexities of the current economic landscape, balancing the need for stimulus with the realities of market conditions. [bc1908ff]