Thailand’s economy is expected to grow between 2.5% and 3.0% this year, a downgrade from the previous forecast of 3.0% to 3.5%. The decline in growth is attributed to decreasing exports and public expenditure, as well as weaker tourism spending. According to the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from these sectors, exports, a key driver of the Thai economy, are expected to decrease by 0.5% to 2% this year.
The country’s economy has visibly weakened, as it only grew 1.8% in the second quarter of this year, significantly slower than the previous quarter. In comparison, Thailand’s economy expanded by 2.6% in 2020. In response to this decline, the business group is urging the government to implement measures to stimulate economic growth, particularly through boosting the tourism sector, another important driver of growth.
The business group also believes that the central bank’s benchmark interest rate, currently at 2.25%, is already at a balanced level. This suggests that there may be limited scope for further monetary policy measures to stimulate the economy. It remains to be seen how the government will respond to these recommendations and address the challenges facing Thailand’s economy.