Paopoom looks for more assistance from monetary policy
He said monetary policy is not only about policy interest rates, but also includes measures such as credit distribution, injecting liquidity into the economic system or easing certain conditions to incentivise banks to lend.
In the past, the Finance Ministry called for the relaxation of loan-to-value criteria, and eventually the Bank of Thailand did ease these conditions, although it took a long time for consideration.
Regarding the responsible lending framework, Mr Paopoom said it may need to be reviewed for deployment during a more suitable period.
He said a key fiscal measure is the 115-billion-baht stimulus package already approved by the government, which is expected to rev up the economy in the fourth quarter of this year and the first quarter of 2026.
On June 24, the cabinet approved 481 projects worth 115 billion baht as part of a stimulus package expected to create 7.4 million jobs and lift GDP growth by 0.4 percentage points.
Finance Minister Pichai Chunhavajira said earlier the government needs to implement stimulus measures as both domestic and international factors weigh on the economy, especially the global trade war and US tariffs, which dampen exports and reduce income.
The key principles for the stimulus budget include: ensuring widespread distribution of funds, promoting employment and supporting projects with long-term impacts.
Each investment project must have a minimum value of 500,000 baht, except for essential projects such as those in the tourism sector, which may be below that threshold.
The investment period must not exceed 12 months and must be completed by Sept 30, 2026.
According to Mr Paopoom, Thailand's economic outlook would be improved if not for the new US tariff proclamation of 36% for Thailand on Tuesday, as the local Manufacturing Production Index posted growth for two consecutive months after previously falling into negative territory.
"The Trump tariffs are a major issue, but the final tax rate for Thailand remains uncertain," he said.
In the latter half of this year, Mr Paopoom said both the Thai and global economies are expected to face increasing challenges, with the Thai economy forecast to decline in the second half compared with the first half.
The Bank of Thailand forecasts economic growth of 2.3% for 2025, with a 2.9% expansion in the first half and a 1.6% increase in the second half.
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