BANGKOK, Thailand – Thailand’s economy continues to grapple with challenges, marked by sluggish domestic demand and significant slowdowns in the second quarter of 2024.
The recent meeting of the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) has indicated that, despite government initiatives to boost public investment, private investment shrank by 6.8%, largely due to a steep decline in automotive sales.
Payong Srivanich, Chairman of the Thai Bankers’ Association, who led the JSCCIB meeting, said that the ongoing floods worsened the situation, with damages estimated at 6-8 billion baht which is about 0.03-0.04% of GDP, severely impacting the agricultural sector.
Payong emphasized that the 24% drop in automotive sales played a major role in the economic slowdown. Nonetheless, the JSCCIB maintained its 2024 growth forecast at 2.2-2.7%, while revising export growth upwards to 1.5-2.5%, driven by a 15.2% surge in electronic goods exports in July.
In response to the floods, the JSCCIB established a task force to propose long-term water management strategies to the government, aiming to prevent the recurrence of the devastating 2011 floods. The committee stressed the importance of nationwide infrastructure upgrades to improve water retention and management, particularly ahead of potential storms in September and October, which could impact the Northeast and Northern regions, including Ang Thong and Ayutthaya provinces.
Additionally, Payong announced efforts to bolster the banking sector’s defenses against financial fraud, particularly mule accounts. In collaboration with the Anti-Money Laundering Office and the Central Fraud Registry, the Thai Bankers’ Association plans to enhance monitoring and data-sharing systems, with plans to extend these measures to corporate accounts. (NNT)
