The SCB Economic Intelligence Center (EIC) has adjusted Thailand’s economic growth projection for 2024 downward to 2.7% from 3% due to difficulties in the manufacturing sector, including sluggish recovery, reduced competitiveness in exports, and structural impediments.
Here are the main points:
- The SCB EIC has lowered Thailand’s 2024 economic growth forecast to 2.7% due to challenges in manufacturing and delays in the 2024 Budget Act.
- Issues in the manufacturing sector include reduced competitiveness, slow overseas demand recovery, and high inventory levels impacting Thailand’s economic growth.
- SCB EIC expects two policy rate cuts by the Monetary Policy Committee (MPC) in April and June to reach 2%, aiming to maintain a neutral monetary policy and ease the financial burden on businesses and households.
Moreover:
- The country’s potential GDP growth is anticipated to decline in the long term to 2.7% due to these challenges, prompting MPC to reduce the policy rate to sustain a neutral monetary policy stance and promote long-term economic growth.
- This move aims to alleviate high debt burdens and enhance economic confidence amidst limited public sector momentum.
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