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
Comments

Banking

Bank cuts Thai 2020 GDP growth outlook to 2.7%

SCB’s Economic Intelligence Center (EIC) has released its latest growth forecast, at 2.7 percent, showing a slow recovery from just 2.5 percent economic growth in 2019

Boris Sullivan

Published

on

SCB cuts GDP growth forecast to 3.1%

SCB’s Economic Intelligence Center (EIC) has released its latest forecast, indicating that the Thai economy at the end of 2020 will have grown by 2.7 percent, showing a s recovery from just 2.5 percent economic growth in 2019, thanks to a better performing export sector and improved global economy.

(more…)

Continue Reading

Banking

Moody’s outlook for APAC corporates remains negative in 2020

Moody’s Investors Service says in a new report that overall credit conditions for APAC non-financial companies will weaken in 2020

Avatar

Published

on

• While positive, the US-China trade agreement will not resolve core differences, dampening business sentiment globally 

(more…)

Continue Reading

Banking

Bank of Thailand (BOT) orders banks to revise interest rates and fees

Bank of Thailand (BOT) has ordered commercial banks to revise their interest rates, and the fees they charge for their financial products and services including ATM and debit card fees

National News Bureau of Thailand

Published

on

Good news for the general public and SMEs as the Bank of Thailand (BOT) has ordered commercial banks to revise their interest rates, and the fees they charge for their financial products and services, including ATM and debit card fees, to help reduce the burden borne by customers.

(more…)

Continue Reading

Most Read

Upcoming Events

Thu 23

12th World Congress on Alzheimers Disease & Dementia

January 23 @ 9:00 am - January 24 @ 5:00 pm BMT
Feb 12

Future Energy Asia

February 12 - February 14
BITEC
Bangkok
Feb 19

13th World Congress on Nursing and Health Care

February 19 @ 9:00 am - February 20 @ 5:00 pm BMT
Phuket
Phuket city
Mar 11

Food science conferences

March 11 @ 8:00 am - March 12 @ 5:00 pm BMT
Mar 11

Food science conferences

March 11 @ 9:00 am - March 12 @ 5:00 pm BMT

Press Release

Subscribe via Email

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

Join 12,053 other subscribers

Trending