Pichai explains to IMF: Thailand needs budget deficit for key investments and economic restructuring

Pichai explained to the IMF that the government still needs a budget deficit to drive investment and infrastructure, while the IMF advised Thailand to balance income and economic growth.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira on Friday shared through X (formerly Twitter) that he had discussions with a delegation from the International Monetary Fund (IMF) regarding Thailand’s fiscal policy and overall economic outlook.

“We agree that international trade is highly uncertain right now, and Thailand’s economic stimulus must focus on infrastructure investment, job creation, and distributing opportunities across the country,” he said.

The IMF expressed a positive view on Thailand’s potential membership in the Organisation for Economic Co-operation and Development (OECD), stating that it would greatly benefit the development of markets and competition in the country. This, the IMF suggested, is an area the government must accelerate to foster long-term growth.

Furthermore, Pichai discussed future fiscal directions, emphasizing the need for the government to generate sustainable revenues that align with the country’s growth. At the same time, the IMF recommended that Thailand adjust interest rates appropriately and address household debt issues to strengthen the domestic economy.

“However, I clarified to the IMF that, in managing public debt in the future, the government will still need to run a budget deficit at times to fund crucial investments necessary for economic restructuring and the future well-being of all Thai people,” Pichai concluded.

(2025/05/31-00:00)