Thailand’s economy is expected to grow 2.5% to 3.0% this year, down from a previous forecast of 3.0% to 3.5%, due to declining exports and public expenditure, along with weaker tourism spending.
The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) said exports, a key driver of the Thai economy, are projected to fall 0.5% to 2% this year.
The group said in a statement that Southeast Asia’s second-largest economy has clearly weakened after growing just 1.8% year-on-year in the second quarter, sharply slowing from the previous quarter. Thailand’s economy expanded 2.6% last year.
The business group urged the government to introduce measures to stimulate the economy this year, including steps to boost the tourism sector – also a key growth driver.
It added that the Bank of Thailand’s (BOT) current benchmark interest rate was already at the balanced level at 2.25%. (NNT)
