### Summary
Thailand's economy grew slower than expected in Q2 2023, with tourism offsetting weaker exports due to global demand slowdown.
### Facts
- 💼 Thailand's economy expanded by 1.8% in Q2 2023, lower than the expected 3.1% growth.
- 📉 The government revised its GDP growth forecast for 2023 to 2.5% to 3.0%, down from the previous range of 2.7% to 3.7%.
- 📊 Q2 GDP rose by 0.2% on a quarterly basis, below the forecasted increase of 1.2%.
- 🌐 Thailand's economy has been supported by the tourism sector and private consumption growth amid weak global demand.
- 📉 Exports, a key driver of growth, have contracted since October 2022, primarily due to China's slowdown as its major trading partner.
Thailand's economy grew at a slower-than-expected pace in Q2 2023 due to weak exports and slower investment, prompting the government to downgrade its 2023 growth forecast to 2.5-3.0%, leading to speculations that the central bank may not raise rates again this year.
Thailand plans to allocate $16 billion in its budget for a crypto universal basic income scheme, while Binance Japan aims to list 100 digital assets, and Delio users' holdings have been reduced by half.
Thailand's new Prime Minister Srettha Thavisin, a real estate tycoon, has been named finance minister in a cabinet endorsed by the king, with the aim of boosting the country's economy and implementing campaign promises such as a 10,000 baht ($285.63) handout in digital currency.
Thailand's newly appointed government plans to distribute a cash handout to citizens using blockchain and crypto wallets, aiming to promote digital finance and reduce income disparities. The move is seen as a warm-up for the deployment of Thailand's central bank digital currency (CBDC) and is expected to add at least 2 trillion baht ($56 billion) to the economy. However, critics have raised concerns about the source of the funds and the potential erosion of privacy and financial freedom.
Thailand's new government has approved measures to boost the economy, including a cut to the diesel tax, a visa-free entry program for Chinese tourists, and a suspension of debt payments for farmers.
Thailand will set a new daily minimum wage by the end of the year, but it will not be the previously stated amount of 400 baht ($11.19), and instead will be higher than the inflation rate.
The Thai baht is expected to weaken further due to increased volatility in global money and capital markets after the US Federal Reserve's hawkish comments regarding its benchmark interest rate.
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The Reserve Bank of India plans to borrow Rs 6.55 trillion ($78.72 billion) through bonds from the market between October and March, including the introduction of a new 50-year tenor bond and the issuance of green bonds worth Rs 20,000 crore.
The Pakistani government has issued new debt of over Rs2.5 trillion in the first three months of the current financial year to address its rising fiscal deficit, indicating a reliance on domestic sources as external financing decreases and revenues decline.
Saudi Arabia is planning to raise funds from international debt markets to cover a projected budget deficit in 2023-2024 due to lower oil prices and extended oil production cuts, with deficits estimated at $43 billion; however, the country's strong non-oil economy is expected to support growth.
Thailand's Prime Minister plans to inject 560 billion baht into the economy through a digital wallet policy, including a 10,000 baht handout for citizens, in an effort to boost the sluggish economy, attract investors in green energy, and pursue free trade pacts.
Borrowing and increasing public debt are among the sources of funds for the 10,000 baht digital wallet handout scheme, according to Dr Prommin Lertsuridej, secretary-general of the prime minister's office, with options including adjusting the budget spending plan, borrowing from state agencies, or obtaining other loans.
