Finance Ministry Vows No Policy Vacuum During Transition; Sets Sights on 3% Potential Growth
Vice Minister Benjarong Suwankiri assures economic continuity via FDI and ‘Quick Win’ policies to return Thailand to its true growth potential
- Thailand's Finance Ministry assures that there will be no "policy vacuum" or economic gap during the current transition to a new government.
- The ministry has set a target to return the economy to its potential growth rate of 3%, viewing lower official forecasts as a "floor."
- To achieve this growth, the ministry is focusing on a strategy driven by foreign direct investment (FDI), with significant investment applications already secured.
- This economic plan is supported by a commitment to fiscal discipline, with a goal to keep public debt below 70% of GDP.
Vice Minister Benjarong Suwankiri assures economic continuity via FDI and ‘Quick Win’ policies to return Thailand to its true growth potential.
Vice Minister for Finance Benjarong Suwankiri has assured the public and international investors that Thailand’s economic policy implementation remains in full force despite the current transition to a new government.
Speaking at the launch of the World Bank’s Thailand Economic Monitor on Wednesday, Benjarong emphasised that there is "no vacuum" in the ministry’s operations and reaffirmed a commitment to driving the economy toward its true growth potential of 3%.
Ensuring Continuity Amid Transition
Addressing concerns regarding the interim political period, Benjarong stated that the Finance Ministry has sufficient measures to maintain economic momentum.
He noted that budget disbursement has been faster than in previous years, with 41% of the annual budget already utilised as of January.
"I want everyone to feel at ease. There is no need to worry that this period will create an economic gap," Benjarong said.
He highlighted that several initiatives, including debt relief programmes, the SME Credit Boost, and soft loan schemes, are already in motion and will continue through the first half of the year.
Aiming Beyond the Floor: The 3% Target
While the World Bank has projected Thailand's 2026 growth at 1.6% and the official ministry forecast stands at 2%, Benjarong categorized these figures as a "floor".
He expressed a firm belief that Thailand’s underlying potential remains at 3%.
To reach this goal, the ministry is focusing on a "growth engine" fueled by foreign direct investment.
He revealed that Board of Investment (BOI) applications reached 1.8 trillion baht last year, with approximately 480 billion baht expected to materialize as actual investment this year.
Fiscal Discipline and Strategic Horizons
The Vice Minister also underscored the government’s commitment to fiscal sustainability under the Medium-Term Fiscal Framework.
The plan includes:
Public Debt Management: Keeping public debt below 70% of GDP.
Debt Reduction: Commencing a gradual reduction of the debt-to-GDP ratio starting in 2030.
Efficiency: Moving away from a pure reliance on the central budget by utilizing new financial alternatives for public policy.
Benjarong further pointed to the 2026 World Bank-IMF Annual Meetings, which Thailand will host, as a "strategic inflection point".
The event, themed "Thailand New Horizon: Empowering People and Building Resilience," is expected to bring 15,000 global leaders to the country, showcasing Thailand’s role in the global supply chain beyond just tourism.
In his closing remarks, Benjarong urged all sectors to turn the World Bank’s findings into practice.
"The analysis will only become real when we move toward implementation," he said. "If we turn analysis into action, the Thai economy will certainly return to 3% growth".
