Finance Ministry lowers Thailand’s growth forecast to 3-4%

Finance Minister Arkhom Termpittayapaisith said the estimate was being reduced because the country’s economy has been hit by several factors. However, he said, the country will still enjoy sustainable economic growth compared to last year.

“There will be a reduction in the range but the average growth forecast will remain at 4 per cent,” Arkhom explained. “If our economy is badly hit, then GDP may go down to 3 per cent. Either way, growth will be continual, which is stronger and better than fast growth, which can slow down later. We are confident we can reach the target of 3 to 4 per cent.”

The minister said the government was also looking into how the price of animal feed and fertiliser can be brought down to help farmers.

“The Finance Ministry is waiting for reports from the Agriculture and Commerce ministries, so we can come up with new tax measures to help farmers,” Arkhom said.

He added that his ministry will also ensure the tax measures really benefit farmers, not just large corporations.

Arkhom added that the factors contributing to economic growth in the second half of the year will be government spending and exports.

He said the Customs Department reported that exports and imports showed a growth of about 12 to 15 per cent in the first quarter.

Arkhom added that though the Thai National Shippers’ Council has forecast a 5 per cent growth in exports, the Finance Ministry wants to push it to 10 per cent by clearing bottlenecks like tax refunds for exporters.

The finance minister added that the baht has dropped when compared to 2020 and 2021, and though this bodes well for exports, it is affecting imports.

Arkhom said the weaker baht is also making it tough for Thailand to reduce retail oil prices in the country to match the drop in global prices.

He said the Finance Ministry and the Bank of Thailand would work in tandem to stabilise the currency’s value and prevent its fluctuation from affecting the business sector.