Connect with us

Banking

SCB cuts thai growth forecast to 3.6%

The SCB’s Economic Intelligence Center (EIC) has reduced its growth projection for the Thai economy this year to 3.6%

Olivier Languepin

Published

on

The SCB’s Economic Intelligence Center (EIC) has reduced its growth projection for the Thai economy this year to 3.6% from a previous expectation of 3.8%.

Trade war puts brakes on exports

According to first executive vice-president Yunyong Thaicharoen, this is mainly due to the decreasing trends of the export sector affected by global economic conditions, a trade dispute between the United States and China, and the International Monetary Fund’s (IMF) latest global economic growth projection reduced to 3.3%.

Yunyong said he believes the superpower trade dispute will not come to a conclusion at a foreseeable date, making it a long-term problem for the Thai economy, which is integrated into the supply chain of goods affected by the tariffs each country has imposed on the other.

Investments by the private sector show signs of recession

Companies are waiting for clarity on the formation of a new government, which should benefit the Q3-4 economy as soon as the new administration can take office, by raising confidence among private firms and international investors.

According to the EIC, current Thai economic growth remains good because of the strong economic foundation, complimented by government investment in infrastructure projects, and the expectation of an additional 760 billion baht in investments this year.

Tourism shows recovery

The tourism sector has shown signs of recovery with a further increase in the number of Chinese tourists.

Chinese tourists in Pattaya
Chinese tourists in Pattaya.
Thailand is exepcted to welcome 40.7 million international visitors this year

It is expected Thailand will welcome 40.7 million international visitors this year. General income in other sectors except farming has also shown growth, which helps with consumer confidence.

As for Thailand, Yunyong predicts that the Bank of Thailand (BOT) will maintain its policy rate at 1.75 per cent throughout the year, given the internal and external risk factors facing the economy.

“Furthermore, the inflation level in the first two months has been at a low 0.7 per cent. We predict that the inflation level in 2019 will be 0.9 per cent on average. This low inflation level is another incentive for the BOT to maintain their policy rate,” he said to The Nation

Strong baht to remain

As for the strengthening of the baht, the EIC expects the currency to remain strong throughout 2019, forecasting it will close the year at between Bt31 and Bt32 to the US dollar. 

Given the baht’s strength, Titinan urges exporters to not only depend on price for competitiveness but focus more on the quality of their products to compete with Thailand’s rivals in the Asean region.

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Banking

Building ASEAN Banking Cybersecurity resilience

Technological revolutions come with their own form of risk: cyber risks. The more “digital” banks become, the more channels for potential points of attacks from cyber criminals, who are constantly evolving to exploit new loopholes.

Boris Sullivan

Published

on

Technology and the internet have undeniably become integrated into our daily lives. Customers’ behaviors continue to evolve and adapt to the technological progresses. In response, new technologies are developed to serve and accommodate customers’ ever-evolving needs.

(more…)
Continue Reading

Banking

Thailand prepares for cryptocurrency challenges

Thailand is moving toward a cashless society. Bank notes and coins are set to become obsolete while transactions via electronic payments have increased over recent years.

Avatar

Published

on

The plan to launch a new currency next year is ambitious and controversial, as Libra is scrutinized by central banks around the globe, including the US Federal Reserve.

(more…)
Continue Reading

Banking

How China’s role in global finance has changed radically

Within the space of just 15 years, China has gone from being the largest net lender to the world to now being a net borrower. The implications for the global economy, and China’s role within that economy, could be significant.

East Asia Forum

Published

on

‘If you owe the bank $1 million, you have a problem. But if you owe the bank $1 trillion, then the bank has a problem’. It’s an old gag, but it underscores an important point: the size of your borrowing or lending can have profound implications for your role in the world.

(more…)
Continue Reading

Most Read

Upcoming Events

Fri 20

ASEAN (Bangkok)Toys and Preschool Expo

September 19 @ 10:00 am - September 21 @ 7:00 pm BMT
Oct 10
Oct 16

GovInsider Live

October 16 - October 17

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,117 other subscribers

Trending