Thailand’s economy set to grow despite potential export decline

Picture courtesy of Wanaporn Yangsiri, Unsplash

A prominent joint business group announced today that Thailand’s economy is set to grow by 2.5% to 3.0% this year, a prediction consistent with their previous forecast. This anticipated growth is attributed to government support measures and the tourism industry.

However, the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB), which represents these sectors, warned of a potential decline in exports, a crucial component of the Thai economy. They projected a drop of between 1% and 2% this year, a slight increase from their previous forecast of a 0.5% to 2.0% decline.

The JSCCIB also flagged the Israel-Hamas conflict as a new risk to the global economy. This unforeseen factor could potentially impact Thailand’s economic performance, reported Bangkok Post.

In terms of tourism, the sector may witness a slight dip in foreign tourist arrivals. The JSCCIB estimates numbers to fall from 28 million to 29 million this year, compared to the earlier prediction of 29 million to 30 million.

Thailand’s economy, the second-largest in Southeast Asia, reported a meagre growth of 1.8% year-on-year in the second quarter. This marks a significant deceleration from the previous quarter, as the strength of the tourism industry was undermined by weak exports and investment. The economy grew by 2.6% last year.

In related news, a light of hope has started to shine on the future of Thailand’s economy as we look forward to this year, and China’s influence as a significant driving force cannot be ignored, suggests a leading Thai economist.

The said economist, Kirida Bhaopichitr, who honours the position of Director for the Economic Intelligence Service at the Thailand Development Research Institute (TDRI), highlighted this perspective in a recent interchange with the State news agency of China, Xinhua.

Kirida and her expertise noted how the compounded factors of China’s economic growth and the strengthening cooperation established between China and Thailand in various industries are taking centre stage in reaffirming Thailand’s road to recovery. To read more click HERE.

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Alex Morgan

Alex is a 42-year-old former corporate executive and business consultant with a degree in business administration. Boasting over 15 years of experience working in various industries, including technology, finance, and marketing, Alex has acquired in-depth knowledge about business strategies, management principles, and market trends. In recent years, Alex has transitioned into writing business articles and providing expert commentary on business-related issues. Fluent in English and proficient in data analysis, Alex strives to deliver well-researched and insightful content to readers, combining practical experience with a keen analytical eye to offer valuable perspectives on the ever-evolving business landscape.

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