Chamber foresees economic recovery in Q3 despite export, agriculture concerns

 

At a meeting in Bangkok of the TCC’s regional boards during the weekend, members from every region shared the view that the recovery would be in full swing by next quarter. They cited strong growth in tourism and border trade as the Asean Economic Community approaches and special economic zones (SEZs) are set up, except in the Northeastern and Central regions because of low crop prices.

TCC vice chairman Somkiat Anuras said the chamber believed gross domestic product could grow by 3.5 per cent this year if its hopes for the third quarter are realised.

“Tourism and cross-border trade will be the key drivers for Thailand’s economy this year, while low crop prices, mainly rice and rubber, are worrisome as they will reduce spending by low-income people,” he said.

The chamber believes the number of tourists could reach 28 million this year, while cross-border trade has a high possibility of reaching its target of Bt1.5 trillion, up from about Bt900 billion last year.

Moreover, with the government’s policy to promote SEZs, investment will also increase in the remaining quarters, which will help economic growth in the Northern, Southern, Eastern and Northeastern regions.

To boost economic growth in all regions, the chamber called on the government to relax regulations for border checkpoints, help lower the cost of production and increase the incomes of farmers, and promote long-term development of the agricultural sector.

Wirote Jirattigalachote, chairman of the TCC’s committee on economic development in the Northern region, said the northern economy would see significant growth in the remaining months, thanks to a strong recovery in the tourism sector, as well as more trade along the borders.

In the first quarter, the number of tourists in the North rose from a year earlier. Spending per traveller increased from Bt31,000 to Bt37,000, while hotel occupancy rose from 60 per cent to 70 per cent. The rising number of tourists was due to a doubling of flights operating to the North, from 60 a week to 120.

 

East to fare better 

Pradchaya Samalapa, chairman of the TCC’s committee on economic development in the Eastern region, said his part of the country was still expected to outperform other regions of Thailand in all categories: consumption, investment, tourism, agriculture, industry and trade.

Furthermore, border trade with Cambodia has expanded substantially at the checkpoints in Trat’s Khlong Yai district and Sa Kaew’s Aranyaprathet.

Wattana Tanasakcharoen, chairman of the chamber’s committee on economic development in the Southern region, said its economy would continue to grow from strong tourism and border trading, despite low crop prices and the conflict in the deep South.

He said the economic growth in the South depended largely on tourism and rubber production. He added that despite the bombings in Yala causing some concern, people were still lived as normal and it should not have much impact on the trading and tourism sectors.

Jit Siratanont, chairman of the TCC’s committee on economic development in the Central region, said the economy in this part of the country would be stronger in the third quarter on expectations of more investment in the service sectors. However, the low price of crops, especially rice, has hurt spending power.

Prapan Techasakolkijkoon, chairman of the chamber’s committee on economic development in the Northeastern region, said the area faced concerns about the low price of rice, as it relied mainly on the agricultural sector.