July 15, 2024
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Thai Finance Minister Reveals Shocking Plan to Boost Economy: Relaxing Mortgage Rules!

Thai Finance Minister Reveals Shocking Plan to Boost Economy: Relaxing Mortgage Rules!

Thailand’s Economy Needs Urgent Support Amidst Weak Demand and Rising Bad Loans

Amidst a backdrop of economic turbulence and stagnation, Thailand’s finance minister has sounded the alarm, highlighting the pressing need to bolster the property sector. As the country grapples with dwindling demand and a surge in bad loans, urgent measures are essential to revive economic vitality. Let’s delve into the key points discussed at the recent business seminar where Finance Minister Pichai Chunhavajira shed light on the critical state of Thailand’s economy:

  • Struggling Growth: Pichai emphasized the dire economic landscape characterized by sluggish growth rates, a far cry from the robust numbers of the past. With current projections hovering around 2.5%, the government is striving to elevate growth to 3% this year, signifying a challenging uphill battle.
  • Tourism as the Driving Force: A ray of hope shines through the tourism sector, expected to be a significant catalyst in revitalizing the economy. Forecasts predict a substantial influx of 35 million foreign tourists this year, a much-needed boost for a country reeling from the impact of the pandemic.
  • Property Sector Woes: Acknowledging the woes plaguing the real estate realm, Pichai stressed the necessity of supporting this sector. Discussions on potentially relaxing loan-to-value (LTV) rules were on the agenda, aimed at alleviating the challenges faced by the property market.
  • Debt Restructuring and Bad Loans: In a bid to address the rising tide of bad loans, state-owned banks are gearing up to assist borrowers with debt restructuring. Furthermore, commercial banks are poised to play a pivotal role in managing the escalating household debt crisis.

Looking ahead, the government’s strategic move to expand Vayupak mutual funds demonstrates a proactive stance towards bolstering the stock market. With plans to inject an additional 100 billion baht to 150 billion baht by October, this initiative aims to breathe life into the Thai bourse.

As Thailand’s main stock index grapples with a 6.6% decline this year, positioning itself as Asia’s worst performing market, concerted efforts are imperative to navigate these challenging times. The essence of collaborative action, prudent economic strategies, and targeted interventions underscore the roadmap towards economic recovery.

In conclusion, fostering resilience, adaptability, and innovation will be pivotal in steering Thailand’s economy towards stability and growth. As stakeholders across sectors unite in a unified front, the trajectory of the nation’s economic landscape holds the promise of brighter days ahead.

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