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17 Apr 2023

Econ Digest

Open the horizon of fiscal measures to stimulate the economy via funds transfer


        Economic stimulus measures, such as funds transfer or cash handout, are fiscal tools used by the government in tackling economic problems. Typically, these measures are used in situations where the economy is adversely affected by external factors such as the global economic crisis and COVID-19. They are also used to address specific problems of vulnerable groups, especially low-income earners and farmers.

        Meanwhile, the Thai economy is set to bounce back quickly in 2023. However, the rebound may not be seen across all sectors amid increased external risks, including the global economic downturn and intensifying geopolitical issues, which may affect the path of the Thai economic recovery ahead. Therefore, economic stimulus measures may still be needed if the Thai economy does not recover as fast as anticipated in 2023. The implementation of economic stimulus policies announced by the political parties to win the votes of their supporters in this year’s upcoming general elections will depend on the election results and the composition of the government. The impacts of new economic measures implemented, particularly the funds transfer measure, must take into account the amount per recipient and other conditions such as funding sources and the country’s fiscal position.

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Econ Digest