Govt to ramp up spending

Ekniti maps out plan to rescue economy

- AEKARACH SATTABURUTH

Ekniti: Vows to tackle worsening economic situation

Finance Minister Ekniti Nitithanprapas has underscored the urgent need to accelerate government spending, describing it as the only remaining engine capable of rescuing Thailand's economy from its current malaise.

Speaking on the second day of the government's policy statement presentation to parliament yesterday, Mr Ekniti, who also serves as a deputy prime minister, warned that Thailand's economy this year is akin to a vehicle “heading off a cliff”, powered by four main engines — most of which are now faltering or stalling.

Exports, which were previously bolstered by front-loaded shipments ahead of US tariff measures under the Trump administration, saw healthy growth of around 3% in the first half of the year. However, following the imposition of tariffs, this momentum has slowed significantly.

According to the Bank of Thailand’s data, private consumption in July experienced negative growth for the first time in over a year. This decline is attributed to waning consumer confidence, longstanding household debt problems, and stagnant incomes. As a result, this economic engine is weakening and on the verge of stalling as well.