Srettha reckons new general election will reinforce Thai economy
Property tycoon Srettha Thavisin believes Thailand’s economic situation will improve markedly once a new government is in place after the upcoming election.
Srettha, who is also chief adviser to the head of the so-called Pheu Thai Family, said the Thai economy is fragile at present and needs some work before it can revive fully.
A recent report from the National Economic and Social Development Council (NESDC) shows that the country’s gross domestic product (GDP) grew by only 2.6% instead of 3.2% as expected. NESDC put this slump down to a drop in Thai exports.
“Political parties’ policies on job creation, economic growth and environmental protection will be key to driving the country’s economy forward,” Srettha said.
Minimising household debt, raising farmer incomes, encouraging exports and advancing the tourism industry are also key to the country’s survival, he added.
Srettha is one of Pheu Thai’s three prime ministerial candidates at the election, which is tentatively scheduled for May 7.
He also said that Thailand’s tourism industry has played a vital role in bolstering the country’s economy in the short term.
“Despite not reaching pre-Covid levels, the return of foreigners to Thailand can still generate revenue in the hospitality business,” he noted.
Srettha also believes Thailand’s real-estate sector will experience growth even though the public’s purchasing power is low and banks are still reluctant to grant loans.
However, he said, once the tourism industry picks up, the real-estate sector will also start flourishing as more foreigners will buy up property.
Despite the economic slowdown last year, Srettha’s real-estate firm, Sansiri, earned a record-breaking profit of 4.28 billion baht. The company’s total sales came in at 50 billion baht, up almost 50% when compared to 2021.
Sansiri is set to launch 52 new projects this year, 30 of which are horizontal projects and remaining 22 condominiums. The company is targeting 55 billion baht in revenue.
Srettha said 2022 was the first year after the pandemic that Thailand began showing signs of recovery. He put this down to Thailand’s successful vaccination policy and its reopening to foreign travellers.
However, he warned of challenges in the future, namely high inflation brought by the surge in energy and commodity prices.
Related Stories:
