Thai business group keeps growth outlook at 2.8%-3.3%

Thailand’s economy is forecasted to grow by 2.8% to 3.3% this year amid risks from sluggish exports and domestic demand. The Joint Standing Committee on Commerce, Industry and Banking highlights the necessity for stimulus and lower interest rates, aligning with its previous predictions. Last year’s growth was 1.9%, with exports expected to increase by 2.0% to 3.0% this year. Inflation is anticipated to remain between 0.7% and 1.2%. After a surprising 0.6% shrinkage in Q4 of 2023, the central bank adjusted its 2024 growth outlook to 2.5%-3.0%. The Prime Minister advocates for reduced interest rates to aid SMEs, amid challenges in securing funding for a significant digital wallet scheme aimed at boosting local spending, which faces criticism for fiscal irresponsibility.