Thailand's New Government Abandons Cash Giveaway

Thailand's new Prime Minister Paetongtarn Shinawatra is likely to abandon a flagship economic stimulus plan involving a nearly $14 billion cash giveaway to citizens, following advice from her father, former Prime Minister Thaksin Shinawatra. The plan, which aimed to provide 10,000 baht to every Thai citizen aged 16 and older, has faced significant opposition regarding its funding and potential inflationary effects, leading to questions over its viability. This decision comes amid a struggling economy, with GDP growth projected at just 2.1% for the second quarter of 2024, and may reflect attempts to distance the new government from potential legal repercussions associated with the cash handout. Nearly 30 million citizens had already registered for the benefit, raising concerns about public reaction to its cancellation. The incoming administration is expected to consider alternative, more targeted economic measures. How this shift will impact Thailand's economic recovery remains uncertain.