Industry-banking committee lowers Thai GDP growth forecast for year

The committee cited clear economic weakness, with exports contracting by 0.5-2%. They are urging the new government to implement immediate measures to reduce the cost of living and stimulate the economy, especially in areas like tourism, including free visas, increased flights, and support for domestic tourism, to boost Thai economic growth to at least 3%.

According to Kriengkrai Thiennukul, chairman of the Federation of Thai Industries (FTI), there are urgent tasks before the new government to drive the Thai economy for the remaining period of this year amid continuing weak exports and lower spending by foreign tourists.

The committee, comprising the Thai Chamber of Commerce, the FTI, and the Thai Bankers' Association (TBA), plans to meet with Prime Minister Srettha Thavisin to present economic strategies, especially for the remaining part of this year to maintain, if not increase, the country's GDP growth.

Additionally, the National Economic and Social Council is coordinating with the committee to address economic issues in collaboration with both the public and private sectors. They have proposed meetings every six months to review development plans for the private sector at both provincial and regional levels.

On September 7, the committee evaluated Thailand’s economic situation for the remainder of the year. They emphasised the need to expedite economic measures announced by the government, including reducing electricity and oil prices and increasing the number of foreign tourists to over 30 million. They also suggested the following additional measures to support at least a 3% GDP growth:

● Make it easier for foreign tourists to visit, such as by expediting temporary visas for tourists from certain countries to ensure a minimum of 30 million foreign tourists.

● Promote domestic tourism by Thais by organising activities to increase spending per person per trip by up to 30%.

● Promote exports to growing markets such as the Middle East, the Commonwealth of Independent States (CIS), and seek new export markets to prevent export contraction.

● Address debt problems by increasing income opportunities for small and medium-sized enterprises and households to deal with debt burdens effectively, as well as consider a debt consolidation mechanism for efficient and comprehensive debt management.

The Thai economy is clearly facing challenges, with a slow recovery and risks from the sluggish global economy as reflected in the declining Purchasing Managers' Index of major countries and the ongoing weak economic activities in the service sector.

However, tourism remains a key driver for the country's economy in the remaining quarter of the year.

The committee recommended expediting additional measures to boost tourism, including fast-tracking visas, increasing flights, and improve communication to instil confidence in travellers about safety, according Payong Srivanich, chairman of the Thai Bankers' Association.