Thailand considers economic stimulus as kingdom gears up for potential casino resorts
Prime Minister Paetongtarn Shinawatra laid out Thailand’s proposed 3.78 trillion baht ($168.3 billion) budget on Wednesday, which could offset some of the impact of US tariff hikes on the Thai economy. The US is Thailand’s leading source of export goods.
The budget “aims to revive and drive the economy towards sustainable growth while improving the quality of life for the people”, Paetongtarn said in Bangkok.
“Given the constraints on revenue and the global economic situation, the government is pursuing a deficit policy to maintain economic stability.”
The draft proposal is expected to pass, despite infighting in the Pheu Thai Party-led coalition.
The fine print
According to the Singapore Business Times, the budget projects a 0.7% rise in spending and a 0.7% drop in the deficit to TBH860 billion, or 4.3% of GDP from the 2025 fiscal year closing in September.
It forecasts growth ranging from 2.3% to 3.3% this year and next year, with inflation of 0.5% to 1.5%. In 2024, the Thailand economy grew by 2.5%.
A February report by the National Economic and Social Development Council warned lawmakers to prepare for policy changes by key trading partners, especially the US. US tariffs on goods could top out at 36% if a deal isn’t made by the end of July. The NESDC also advised protecting the manufacturing sector from dumping and unfair trade practices by improving inspection of imports.
“The acceleration of ongoing Free Trade Agreement negotiations and the exploration of new trade partnerships are necessary,” the NESDC added.
Opposition leader Natthaphong Ruengpanyawut complained that the government has no clear spending strategy. “The concerning issue is not the borrowing itself,” he said. Rather, it’s “government overspending without an investment plan”.
Earthquake, abduction spark fears
The Pattaya Mail reports that tourism in the country took a big hit after the earthquake that struck Thailand and Myanmar in March. More than 1,600 people died, some in the rubble of a 33-storey high-rise in Bangkok that collapsed during construction.
Potential visitors have also been scared off by the abduction of Chinese actor Wang Xing. In January, Wang travelled to Thailand expecting to audition for a film role. Instead, the 31-year-old was spirited away to Myawadday, Myanmar. The border town is a known hub of online scams, illegal online gambling and other cybercrime, often linked to human rights abuses.
Fortunately, Wang was rescued within three days. But the incident has shaken the confidence of Chinese nationals who make up most of the tourism trade to Thailand. To date, international travel to Thailand has dropped 1.04% year on year – a loss of almost 13 million visitors.
All these factors may make Thailand’s controversial Entertainment Complex Bill more appealing to lawmakers. The legislation was designed to “increase the efficiency of tourism and promote investment”, Thailand’s government said in a January statement. “It will also have a positive effect on society in the future as a whole.”
The Thailand Senate is now reviewing the bill and expects to submit its report in July. Meanwhile, the budget proposal will be debated in the House through the end of the month.