News Forum - Thai economy falters as high interest rates impact major sectors

[Thaiger]

The Thai economy has taken a hit, with government revenue collections falling short of the target. Lavaron Sangsnit, the permanent finance secretary, attributed the shortfall to high interest rates, which have significantly reduced the purchasing power of consumers, impacting major sectors such as automobiles and real estate. Consumers, particularly those interested in purchasing cars or … …

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[MrStretch]

I read this story this morning and this permanent finance secretary keeps harping on about how interest rates are the main culprit, yet, buried down near the end of the original article, the truth comes out:

"In a recent report by the Fiscal Policy Office (FPO), state revenue collection for the first four months of fiscal 2024 was found to be below target, mainly due to a significant decrease in oil taxes. ...

This shortfall is attributed to a decrease in the diesel and gasoline tax rates during this period. On an annual basis, the state’s net revenue in the first four months of the fiscal year fell by 14.9 billion baht (US$414 million), or 1.8%, year-on-year, reported Bangkok Post."

Srettha wants interest rates to come down and is waging a publicity campaign to that end

If they stopped their populist policies of reducing their own income streams, this wouldn't be an issue for the government.  Interest rates are another thing, entirely.