As the sun set over a bustling trade fair in Bangkok one June day, invisible tensions hung heavy in the air. There was an undeniable sense that Thailand’s economy stood on a precipice. The local governmental bodies were being assertive – a drastic fall was imminent, they echoed, and a lifeline, a hearty stimulus package, was needed to rescue the situation from further downfall.
At the heart of this discourse was a proposed 10,000-baht handout scheme, designed to bolster the struggling economy, but which was met with skepticism and critique. While the theoretical buoy was promised to pave the way for potential recovery, the question of legitimacy loomed large, was Thailand’s economy really drowning?
In a candid conversation with the Bangkok Post, Prommin Lertsuriyadet, the right hand of the Prime Minister, voiced his apprehensions. Pointing out how the country lagged behind its regional counterparts in economic growth, with household debt rising alarmingly, he insisted Thailand was indeed in an economic whirlwind. He advocated for timely intervention to prevent a calamitous downfall.
With a visionary approach, Dr. Prommin revealed that the government perceived “every single individual as an economic engine to create growth.” To him, the 10,000-baht digital money handout scheme, sustained by reliable blockchain technology, was the elixir to reboot the economy. He reminded how the initiative was disclosed in parliament and the government was obligated to bring it to life, regardless of the controversy surrounding it.
Adding his voice to the stormy debate, Surapong Suebwonglee, a torch-bearer in the national committee on soft power development, took to Facebook to defend the digital currency initiative. Counter-arguing the opposition from a conglomeration of 99 academics, even including ex-governors of the Bank of Thailand, he outlined numerous causes for concern.
Dr. Surapong painted a grim picture of Thailand’s economic health, likening it to a patient hemorrhaging uncontrollably. With the GDP growth for the year likely to be lower than 2%, the light at the end of the tunnel seemed far from sight. Considering that the country’s economic growth for the first two quarters was 2.6% and 1.8% respectively, it seemed improbable to meet the optimistically predicted 2.8% GDP growth for 2023.
Backing his concern, were comments by the renowned economist Chartchai Parasuk who predicted a measly 1.4% growth in the third semester. On another worrying note, Dr. Surapong pointed out that Thailand began grappling with liquidity issues mid-year, forcing banks to withhold new lending.
Adding fuel to the fire, in the initial weeks of October, a 7.73 billion baht capital outflow occured. Such factors seriously raised doubts over the likelihood of meeting the overly-optimistic forecast of 2.8% GDP growth.
All these developments combined painted a grim picture of the nation’s economy, revealing why the proposed digital currency scheme was deemed a necessary step. Only time would tell whether the controversial measure would prove to be the raft that kept the economy afloat in this seething sea of financial instability.
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