Confidence riding high – Thai economy continues to surpass forecasts
Confidence is riding high according to the Joint Standing Committee on Commerce, Industry and Banking. They report that the private sector remains confident about Thailand’s economic growth of 4.5% being maintained as exports and tourism continue to rise. But the Committee warns that the private sector is being spooked by potential fall out from the ramping up of trade disputes between China, the US and Europe.
The Committee remains fearful that a tit-for-tat trade war over tariffs between the US and its major trading partners could lead to fallout on the world economy. In a knee-jerk reaction, China has imposed US$ 3 billion on 128 US products in response to the Trump Administration’s new tariff rates announced hastily last month.
The Committee forecasts 4-4.5% growth in the Thai economy for the rest of 2018 whilst exports ar forecast to rise from 5-8%, up from 3.5-6% forecasts last year. They also predict the inflation rate should remain low, in the range from 1-1.5% for the rest of the year and the baht continuing to remain around 32 baht to the US dollar for the rest of 2018.
