Economics

Thai Economy Seen Shrinking Less Than Forecast on Cash Boost

  • Government to increase cash handouts, boost stimulus spending
  • Deputy PM says GDP contraction to be less than 7.5% in 2020
Supattanapong PunmeechaowPhotographer: Andre Malerba/Bloomberg
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Thailand may avoid its worst-ever economic performance by boosting cash handouts to pandemic-hit citizens and accelerating government spending in the final quarter, according to Deputy Prime Minister Supattanapong Punmeechaow.

Southeast Asia’s second-largest economy may shrink less than 7.5% this year with the help of various stimulus measures and barring a major second wave of coronavirus infections, Supattanapong said in an interview Thursday in Bangkok. The government expects total spending of about 100 billion baht ($3.2 billion) under its co-pay programs next quarter to revive domestic demand, he said.