Panel revises forecast, predicts further slump in economy
The Joint Standing Committee on Commerce, Industry and Banking revised its forecast for Thailand’s economic growth on Wednesday (July 1), bringing it down from between -3 and -5 per cent to between -5 and -8 per cent.
It also brought its forecast for export expansion down to -7 to -10 per cent from its earlier prediction of -5 to -10 per cent.
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Predee Daochai, the committee’s chairman, said that despite the gradual easing of lockdown measures, the purchasing power of households and the business sector is still weak. Also, he said, the export and tourism sectors are still under pressure from the shrinking global economy and the global impact of the Covid-19 pandemic.
He went on to say that the Thai economy will continue facing uncertainty in the second half due to escalating infections. Also, trade wars between the US and other countries, coupled with a strengthening baht, is also putting pressure on Thailand’s export and manufacturing sectors.
The committee has also voiced concerns about the baht appreciating faster than its regional peers in June. The Thai currency is expected to strengthen further.
