Thailand plans $572 million stimulus spending and will compensate border conflict casualties

Thailand will spend 18.5 billion baht ($572 million) on stimulus measures to support the economy as it braces for the impact of U.S. tariffs, and will compensate families of those who died in last month's border conflict, officials said on Tuesday.

The stimulus measures approved by cabinet are aimed at enhancing economic competitiveness and supporting student loans, Deputy Finance Minister Julapun Amornvivat told reporters. 

The government still has about 25 billion baht of funds to use to mitigate the impact of U.S. tariffs and for broader relief efforts, Julapun said.

The U.S. last week set a 19% tariff on imported goods from Thailand, lower than the 36% rate announced earlier this year and more aligned with other countries in the region.

Julapun said cabinet gave the government approval to prepare a joint statement on tariffs and trade with the United States, but said discussions were ongoing and there was no set signing date.

On Tuesday, the University of the Thai Chamber of Commerce said it expected the economy to grow 1.7% this year. That is below both the finance ministry's revised forecast of 2.2% growth in 2025 and last year's actual growth of 2.5%.

The cabinet also approved a 10 million baht ($310,000) payment to the families of government officials who died in the July conflict with Cambodia, while those injured will receive up to 1 million baht, government spokesperson Jirayu Huangsap told a briefing.

Families of Thai civilians who died during the conflict will each receive a payment of 8 million baht, he said, while the injured would receive up to 800,000 baht.

Reuters