Thailand's Slowing Economy Sparks Concerns for Stimulus Measures

Thailand's economy grew at its slowest pace in almost a year in the third quarter, with a year-on-year growth of 1.5%, below expectations. Weak public spending, inventories, and goods exports, along with political uncertainty, have contributed to the slowdown. Analysts warn that the room for public spending is narrowing, and the impact of tightening monetary policies could further weaken the economy. The Bank of Thailand has raised interest rates for the eighth consecutive time, but some analysts expect a pause or potential rate cuts in the future. The weak GDP growth may intensify the government's push for a large digital wallet handout. The Thai baht has also declined against the dollar and is heading for its fourth yearly decline.