Negative economic sentiments keep Thailand’s growth forecast at 2.8-3.3%
Thailand’s economic growth forecast will remain unchanged at 2.8-3.3% due to negative sentiments, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) says.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), said after presiding over the JSCCIB meeting on Wednesday that the Thai economy was still vulnerable to several negative factors, such as the slowdown of exports and slower-than-expected tourism recovery. Rising household debts are also having an impact on people’s purchasing power, he added.
“Though export is likely to expand, the expansion will be small this year,” he said, adding that industries that rely on exports will have to keep their production at a lower level this year.
He said that though there is still room for the tourism sector to improve, the number of Chinese arrivals is still 50% lower than the pre-pandemic level, as most of them prefer to travel locally.
Domestic purchasing power, meanwhile, will continue being pressured by household debt, he added.
However, he said, JSCCIB expects government expenditure to improve in the second quarter of this year, thanks to a swift move to allocate funds from the national budget.
“This will help the economy expand as well as support government and private investments in the future,” he added.
