Thailand expects to distribute $4 billion in handouts in Q2 next year

BANGKOK (Reuters) -Thailand expects to conduct the third phase of its cash handout stimulus programme in the second quarter next year, when 140 billion baht ($4.1 billion) will be distributed to 14 million people, a deputy finance minister said on Wednesday.

“The various stimulus measures can push growth above 3% next year. We are quite confident of that,” Julapun Amornvivat said, adding that full-year growth in 2024 will not exceed 2.8%.

About 14.5 million people have so far received a payment of 10,000 baht ($290), out of an estimated 45 million who are expected to be take part in the government’s signature scheme.

In January, 40 billion baht will be transferred to the elderly, followed by 140 billion baht in the second quarter to others who registered, Julapun said.

The government also plans to spend 40 billion baht to lower costs of production for farmers by early next year, he added.

Southeast Asia’s second-largest economy grew 3% in the July-September period this year, the state-planning agency said this week, the fastest rate in two years.

The agency forecast growth of 2.6% this year and 2025 growth in a range of 2.3% to 3.3%.Last year’s growth of 1.9% lagged regional peers. The economy has struggled under high household debt and borrowing costs as well as sluggish demand from major trading partner China.

After sustained government pressure, the central bank unexpectedly cut its policy interest rate last month. Its next rate review is on Dec. 18.

($1 = 34.49 baht)