Thailand Unveils $1.4B Stimulus to Boost Consumption, Growth Ahead Election

Thailand's government, led by Prime Minister Anutin Charnvirakul, has launched a 44 billion baht ($1.36 billion) consumption stimulus program called the 'Quick Big Win' initiative to invigorate its slowing economy ahead of a general election. The centerpiece, the 'co-payment' scheme, subsidizes up to 60% of certain food and consumer goods costs, with individuals receiving up to 200 baht daily, aiming to assist approximately 20 million people and boost consumer spending. This program is expected to raise GDP growth by 0.3 to 0.4 percentage points and lift fourth-quarter economic growth to over 1%, countering challenges such as US tariffs, high household debt, weak consumption, and a strong currency. Economists predict Thailand's GDP growth to slow to between 1.8% and 2.2% in 2025, down from 2.5% the previous year and lagging regional peers. The stimulus is part of a broader strategy to support small merchants, increase domestic consumption, and strengthen exports as the government seeks to revitalize the economy in the final quarter of the year. The Bank of Thailand has also eased monetary policy with interest rate cuts to complement fiscal stimulus efforts.