Thailand plans to invest 18.5 billion Thai baht to stimulate the economy and compensate the casualties of the border conflict

Thai officials said that the government will spend 18.5 billion Thai baht on economic stimulus measures and provide compensation to the families of the victims in the Thai-Cambodia border conflict last month.

Reuters reported that Thai government spokesperson Chirayut said at a press conference on Tuesday (August 5) that the cabinet has approved a payment of 10 million Thai baht to the families of government officials who died in the border conflict in July, and injured officials will receive a maximum compensation of 1 million Thai baht.

The families of civilian victims received a compensation of 8 million Thai baht, while the injured received a maximum compensation of 800,000 Thai baht.

Thailand's Deputy Finance Minister Chulavin also said that the 18.5 billion baht stimulus measures approved by the cabinet aim to enhance economic competitiveness and support student loans.

Among them, approximately 25 billion Thai baht can be used to mitigate the impact of US tariffs. The United States imposed a 19% tariff on goods imported from Thailand last week, which is lower than the 36% announced earlier this year.

Chulawin said that the cabinet has approved a joint statement with the United States on tariffs and trade issues, but negotiations are still ongoing and the signing date has not yet been determined.

The University of the Thai Chamber of Commerce said on Tuesday that it expects Thailand's economy to grow by 1.7% this year, lower than the revised growth rate forecast of 2.2% by the Ministry of Finance and also lower than the actual growth rate of 2.5% last year.

The most severe conflict in decades broke out between Thailand and Cambodia on July 24th, resulting in at least 43 deaths and 235 injuries. Additionally, about 300,000 people left their homes for refuge. The two countries later reached an unconditional ceasefire starting from July 29th.