Thailand needs to restructure economy to lift growth, finance minister says
Tax measures would be introduced to promote environmentally friendly investments and urged state firms to offer green bonds
THAILAND needs to restructure its economy as growth is running below historical rates and needs to be increased, the finance minister said on Thursday (May 30), reiterating an estimate of 2.5 per cent expansion this year.
Pichai Chunhavajira also said tax measures would be introduced to promote environmentally friendly investments and urged state firms to offer green bonds.
He told a business forum the 2024 growth forecast is based on a slowdown in exports and industrial output as well as the agriculture sector, which has been impacted by drought and the El Nino weather pattern.
“There is a need to adjust and upgrade the economic structure of sectors that are important to the country’s economy in the long term,” Pichai said.
Growth has tended to be lower than the historical growth rate, he added. Earlier this week he said growth should be at least 3.5 per cent annually.
South-east Asia’s second-largest economy expanded 1.5 per cent in the first quarter year-on-year, slowing from 1.7 per cent growth the quarter before. Last year’s growth was 1.9 per cent. REUTERS
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