Economy

Thailand to give 50 million people £200 each to boost economy


Thailand has unveiled the next stage of a controversial plan to give 50 million people roughly £215 each, in an attempt to boost a lacklustre economy.

The “digital wallet” scheme was a key election pledge of Srettha Thavisin, the prime minister. It will give 10,000 baht to all lower-income Thais aged 16 and over and is expected to cost 450 billion baht (roughly £9.5 billion).

The government has insisted the handouts will unleash an “economic tornado”, with Mr Srettha suggesting the stimulus could increase GDP by as much as 1.6 percentage points. This would be a much-needed boost for an economy underperforming compared to peers in south-east Asia.

But the policy – a campaign promise by Mr Srettha’s Pheu Thai party last year – has proved controversial, with economists warning it is an inefficient strategy for long-term growth and lingering questions about how it will be financed.

‘Only a band-aid’

“The Thai economy is not healthy. The digital wallet policy, if enacted, will only be a band-aid on Thailand’s structural economic problems,” said Mathis Lohatepanont, a political analyst. He pointed to a Bank of Thailand report in May which warned that exports, manufacturing and private investment were all down.

“Thailand will require longer-term economic policy-making that orients the economy towards innovation-driven growth in order to escape its current state of stagnation,” he told The Telegraph.

But the Thai government this week announced it is pressing on with the plans, with registration for eligible individuals and businesses to begin on Aug 1.



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