BANGKOK - Thai Prime Minister Srettha Thavisin said on Jan 24 he believes the country’s economy is in crisis, adding that the government would roll out stimulus measures in addition to handouts to boost growth.

“I confirm that the economy is not doing well and is in crisis,” he told reporters, adding that it was fine if the central bank disagreed with him.

Mr Srettha’s comments come after the central bank governor told Reuters on Jan 23 that government stimulus measures would not fix structural issues plaguing South-east Asia’s second-biggest economy.

The government this week slashed 2024’s growth projections to 2.8 per cent from an earlier forecast of 3.2 per cent on weaker exports and foreign tourist arrivals.

Thailand’s growth has been slower than expected, but the economy is not in crisis as portrayed by the government, said Bank of Thailand (BOT) governor Sethaput Suthiwartnarueput, who has come under fire from the Premier for not cutting interest rates despite low inflation.

Mr Srettha, who is also Finance Minister, has told the governor that high rates were hurting businesses and has urged the BOT to lower rates, which are at a decade-high of 2.5 per cent.

His government has promised a slew of stimulus measures to revive the economy, including a US$14.3 billion (S$19.2 billion) handout programme targeting 50 million Thais.

“Reducing interest rates is a central bank matter... but there will be more policies in addition to the digital wallet,” said Mr Srettha. REUTERS