Thailand’s economy is nearing crisis due to declining exports and uncompetitive manufacturing, said caretaker Finance Minister Pichai Chunhavajira. Exports, which account for 70% of the economy, are faltering as the manufacturing sector struggles to meet demand. “We can’t compete. We can’t adapt in time,” Pichai told a business seminar. Despite a year-on-year growth of 2.3% in the second quarter, quarter-on-quarter growth slowed to 0.8%. The Finance Ministry forecasts 2.7% growth for 2024, following last year’s 1.9% increase, which trailed regional peers. The Bank of Thailand is expected to maintain its key interest rate at 2.50% amid concerns over the government’s THB145bn handout, potentially leading to renewed pressure for rate cuts.
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