Thailand Eyes $12 Billion in Debt to Cushion Mideast Crisis

Thailand’s government plans to raise 400 billion baht ($12 billion) in new debt to support farmers, low-income households, and small businesses affected by the fallout from the Middle East conflict, while accelerating the country’s shift away from fossil fuels.

The cabinet approved the issuance of an emergency decree to pave the way for the borrowing, Prime Minister Anutin Charnvirakul told reporters on Tuesday. Higher state spending will help the Thai economy from entering stagflation — a sustained period of high inflation and low growth — Anutin said, adding that what began as an energy crisis has spread to food prices and raised the overall cost of living.