EIC ups Thai growth forecast to 3.6% on back of export recovery
Siam Commercial Bank’s Economic Intelligence Centre (EIC) has revised upward its forecast for this year’s Thai economic growth to 3.6 per cent from the earlier estimate of 3.4 per cent, following a consistent export recovery amid an improving global economic situation.
Thailand’s major export markets, including the United States, the euro zone, Japan and China, are expected to see higher growth throughout the year, while an easing of Europe’s political concerns will boost confidence for trade, investment and demand for manufacturing products from the Kingdom during the rest of the year, the EIC said on Tuesday.
However, recent drops in the prices of crude oil and commodity products may result in lower exports of commodity-related products than those in the first half, the research house said.
The baht, which has been appreciating more than its regional peers, may also affect exporters’ price competitiveness, particularly in commodity products, it added.
US trade policy, meanwhile, continues to be a key risk to global trade, the EIC cautioned.
The Thai economy expanded 3.7 per cent year on year in the second quarter and 3.5 per cent in the first half, according to the National Economic and Social Development Board.
