Customers shop at Bang Kapi Market during the co-pay campaign. Varuth Hirunyatheb
An economist is concerned about Thailand's potential dual deficit scenario, in which both the fiscal balance and current account move into deficit simultaneously.While the government continues to rely on fiscal stimulus to support growth, weaker exports, softer tourism earnings and rising imports have raised questions about the sustainability of the country's external position.
A widening fiscal deficit alongside a deteriorating current account could increase financial market volatility, pressure the baht and limit policy flexibility.
These concerns were highlighted by Kiatnakin Phatra Financial Group chief economist Pipat Luengnaruemitchai, who warned that Thailand may be moving towards a dual deficit that could undermine economic stability and contribute to long-term baht depreciation.
The warning comes as Thailand recorded a record trade deficit of US$10 billion in April, driven by a 45% year-on-year surge in imports to $41.6 billion, compared with exports of $31.5 billion. For the first four months of the year, imports totalled $147 billion against exports of $128 billion, resulting in a cumulative trade deficit of $19.5 billion.
