Bangkok, Aug. 2-ECD is worried about setting up a new government to drag the economy in many ways. especially travel Exports and use of the 2024 budget reiterated that the CRC is ready to support the new government in all aspects for a full year. Specify, even now, the government cannot yet be established. But still in the timeframe expected that in August everything must end and be clear
The joint committee of 3 private institutions (KorKor.) consists of the Board of Trade of Thailand. The Federation of Thai Industries and the Thai Bankers' Association, where the BOD held a board meeting in August, chaired by Mr. Payong Srivanich, President of the Thai Bankers' Association as the BOD's chairman, and Mr. Phumin Harinsut, Vice Chairman of the Board of Trade of Thailand and Mr. Kriengkrai Thiennukul, President of the Federation of Thai Industries co-chaired the press conference where the CRC meeting assessed the economy as follows:
Mr Payong said that the global economic recovery is likely to slow down. The global economy for the remainder of the year will be hit by high interest rates due to interest rate hikes by the Federal Reserve and Europe, and inflation concerns. As a result, the International Monetary Fund estimates global economic growth at just 3% this year, which is very low compared to the past. While China's economic recovery is likely to slow down, reflected by GDP in the second quarter that grew only 6.3%, lower than the expected 7.3%, and the economic stimulus measures are not very effective, so the export sector of goods Thailand continues to face pressure from slowing global demand for the rest of the year.
However, the Thai economy during the rest of the year is still highly challenging. Although the overall number of foreign tourists this year has a chance to recover as expected at 29-30 million people, spending per capita is still low. Because Chinese tourists have not fully returned. causing the recovery of tourism in some provinces to be slow while the economic impetus from domestic demand faces more challenging factors. As the spending of Thai tourists per capita is still lower than in 2019, the household sector is still concerned about the cost of living. and worried that the economy would go into recession which is more than other countries together with the confidence of the business sector declined Concerned about the protracted political situation budgeting for state expenditures and a slowdown in exports. The NRC meeting is concerned. and would like to see the new government come to solve economic problems as soon as possible
In addition, the drought problem tends to be more severe than expected. The accumulated rainfall during Jan.-Jul. 2023 is below normal in all areas. especially in the central region There is a 40% lower than normal rainfall. When considering the amount of water in the dam that can be used as of July 2023, it was found that the amount of water in the dam was at a critical level in the northern, central, western and eastern regions, especially the central and western regions. The amount of usable water is close to that of 2015, which was a year in which Thailand faced severe drought. It is estimated that drought may cause damages of up to 53 billion baht, therefore, it is important to focus on solving drought problems and affecting the agricultural sector during the late 2023 to the first half of 2024. 2023 will be at 3.3.5%, exports will be negative at 1-0%, inflation at 2.7-3.2, etc.
Mr. Kriengkrai Thiennukul, President of the Federation of Thai Industries or FTI said Now the private sector is monitoring and watching how the new government will be formed. expecting to finish and see a new government by August If the new government is real, it will allow the economic stimulus plan to continue. Especially in the confidence of foreign investment. Tourism will come back better. The more protracted, even though it looks like a good tour, but it will be a travel that costs less money because of being unsure of politics. Including at this time, Thailand's export sector has been negative for 9 months. If the government is established slowly, it will also affect the Thai economy in many ways. And regardless of which party the government is from, the private sector is ready to drive the Thai economy forward.-Thai News Agency
Source: Thai News Agency