Thailand Faces Economic Policy Tensions Amid Slowing Growth

Tensions are apparent between the Bank of Thailand and the government over economic policies like interest rates and the digital wallet scheme.

There are concerns over rising non-performing loans, higher production costs for manufacturers, and Thailand's trade imbalance with China.

Some experts say a crisis is unlikely as banks are still profitable, inflation is declining, and GDP growth forecasts are still positive.

Targeted fiscal stimulus focusing on vulnerable groups and structural reforms are needed to support sustainable long-term growth.

Monetary policy may need to shift to a more accommodative stance to support the uneven economic recovery.