(Updates with spokesperson's name in paragraph 4, stock market movement in paragraph 8) BANGKOK, Oct 7 (Reuters) – Thailand's cabinet on Tuesday approved a consumption stimulus programme worth 44 billion baht ($1.36 billion), a government spokesperson said, as the new administration tries to revive the country's sluggish economy. Southeast Asia's second-largest economy has been hit by U.S. tariffs, high household debt, weak consumption, and a strong currency. GDP growth is expected to dwindle to between 1.8% and 2.2% this year, according to a leading joint business group, down from the 2024 rate of 2.5%, which was already lower than its regional peers. The "co-payment" scheme is one of a number of stimulus measures now underway, and will subsidise up to 60% of the costs of certain food and consumer goods for qualified Thai citizens, said spokesperson Siripong Angkasakulkiat. Finance Minister Ekniti Nitithanprapas said last week that the scheme was expected to boost economic growth by up to 0.4 percentage points. The minister said the co-payment plan and other measures was expected to lift fourth-quarter economic growth to more than 1%, up from the previously expected 0.3%. Ahead of the Tuesday announcement, Thailand's benchmark index rose 1.2% to its highest level since September. ($1 = 32.45 baht) (Reporting by Orathai Sriring and Kitiphong Thaichareon; Editing by David Stanway)
(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
