The economic cabinet on Friday agreed to set up a special panel, expected to be led by Deputy Prime Minister Somkid Jatusripitak, to drive the implementation and management of economic measures and reforms.

Dr. Kobsak Pootrakool, secretary of the economic cabinet, said that the special panel was necessary in light of global economic fluctuations, which are impacting the production and financial sectors and confidence, which is exacerbated by the escalating trade war between the United States and China.

He said that the Thai economy is being hard hit, as clearly evident during the first half of this year with a 2.8% economic growth rate for the first quarter compared to 4% last year.

The National Economic and Social Development plan is scheduled to be released on Monday showing that the growth rate for the second quarter is also low, said Dr. Kobsak, adding that growth for this year is expected to be just 3% if nothing is done to stimulate the economy.

The economic panel is tasked with driving the management of the economy covering assistance for low-income earners, assistance for SMEs, raising of prices for farm produce and farmer incomes, accelerating the disbursement of national and investment budgets, export and tourism promotion and support for private investment and relocation of production bases.

Additionally, the working structures of the public sector and the production element of the agricultural sector will be reformed, said Dr. Kobsak, adding that all relevant ministries must cooperate with the economic panel to drive the implementation of these policies and reforms.