Thai cabinet to begin deliberations on 2020 budget after tumultuous election
To be chaired by recently re-elected Prime Minister Gen Prayut Chan-o-cha, Thailand’s cabinet will commence deliberations on the country’s 2020 budget today.
Thailand’s government is expected to approve a $104 billion budget. It anticipates a budget deficit of 15 billion USD, with approximately 20% of the spending on government expenditures alone. This spending will mostly consist of investments in infrastructure to boost economic activity in the nation.
Although Thailand remains the second largest southeast Asian economy, its economic growth rate has been the lowest in the region over the past four years, averaging just 2.8% over this period.
While significant political uncertainty and delays in government formation are likely the cause of this low growth rate, the economy has also been affected by weak export demand. Slowing global demand for large electronics and automobiles—manufactures that makes up 32.4% of Thailand’s exports—are the sectors that have most adversely impacted economic growth. The ongoing trade dispute between the US and China, Thailand’s two largest export markets, stands as another likely cause.
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