Tackling slowdown in exports 'should be a priority for next Thai government'
The National Economic and Social Development Council (NESDC) expected the next government to release actual strategic plans to enhance Thailand's export sector, which is contracting this year and is likely to next year as well.
The remarks came a day after the pro-democracy Move Forward Party emerged as the winner of the May 14 general election.
Speaking at a news conference on Monday about the country's economic performance in the first quarter of this year and the overall outlook for 2023, NESDC secretary-general Danucha Pichayanan said the smooth formation of a coalition government and its internal stability would be critical for Thailand's economic growth for the rest of the year and the next four years.
This boosts corporate and investor confidence as the country experiences a significant revival in tourist and domestic spending, he said.
However, according to the NESDC report, Danucha pointed out that the country's export industries are particularly weak as a result of the global crisis and geopolitical concerns.
Therefore, the next government must swiftly devise methods to promote this sector, as it is one of the primary engines driving Thailand's economy in the long run.
According to the report, the country's exports were valued at US$69.8 billion in the first quarter, down 4.6% from the previous quarter and in line with the economic slowdown of the primary trade partners.
Meanwhile, export volume fell by 6.4%, following a 10.3% contraction in the previous quarter, while export prices rose by 2.0%, from 3.1% in the previous quarter.
The secretary-general of the NESDC said that export should be a priority for the incoming government because it is tied to the livelihood of people working in both industry and agriculture.
Supporting the growth of exports could be another answer if the goal is to enhance people's living standards, he noted.
He urged the new government to find a long-term solution for the country's electricity supply so that the price would be steady and in accordance with the cost of living of the average person.
In addition to sustaining the economic and political conditions following the general election, he urged the incoming government to name a cabinet as soon as possible, preferably by September, in order to speed up the national budget disbursement.
The government agencies will therefore have a budget to spend in the fourth quarter of this year, which will help drive the country's economy, he explained.
However, he urged the next government to practise budgetary restraint and implement fiscal discipline so that the country can withstand any global economic crisis.
