Effect of state stimulus aid

Inbound tourism flow is expected to spur income in the final three months of this year. Apichart Jinakul

- 

on five pillars: stimulating the economy and tourism; tackling household debts; expanding household savings; strengthening small and medium-sized enterprise liquidity; and promoting saving for future investment.

Lalita Thienprasiddhi, head of macro research at Kasikorn Research Center (K-Research), said the government measures are anticipated to relieve the financial burden of consumers and help sustain the economy in the final quarter.

Scheduled for implementation during the final two months of the year, the co-payment scheme is expected to lift the economy by only 0.15 percentage points due to low purchasing power, noted the centre.

Given the limited policy space and concerns about fiscal status from credit rating agencies, K-Research said additional government measures must focus more on efficiency of both spending and revenue generation.

"Being a minority government may affect the push for key policies and budget disbursements throughout its tenure, which is expected to last roughly eight months," said Ms Lalita.

SHORT-TERM BOOST