7-9-2023 (BANGKOK) Thailand’s economic growth outlook for this year has been revised downward, with expectations now ranging between 2.5% and 3.0%, according to a prominent business consortium. This adjustment comes as a result of a slump in exports, reduced public spending, and a decline in tourism expenditure.
The Joint Standing Committee on Commerce, Industry, and Banking, a group encompassing industry representatives, anticipates a drop in exports between 0.5% and 2% for the current year. Exports have traditionally played a pivotal role in propelling Thailand’s economy forward.
The Southeast Asian nation’s economic resilience has taken a notable hit, with a meager 1.8% year-on-year growth in the second quarter, marking a stark deceleration compared to the preceding quarter.
In comparison, Thailand witnessed an economic expansion of 2.6% in the previous year. Against this backdrop, the business consortium has called upon the government to implement strategies aimed at stimulating the economy in 2023. These measures should encompass initiatives designed to rejuvenate the tourism sector, which has historically been a cornerstone of Thailand’s economic growth.
Furthermore, the consortium has pointed out that the current benchmark interest rate, set at 2.25% by the central bank, is already at an equilibrium level, suggesting limited room for further monetary policy adjustments.