BANGKOK, 21 June 2019 (NNT) – Uncertainties regarding the forming of a new government and trade war concerns, have resulted in confidence among business operators in May 2019 continuing to decline, reaching a 15-month low, as shown in the latest TCC Confidence Index.

The figure is however, expected to improve in June once the new government proceeds with proposed megaprojects, injecting the economy with cash flow expected to help the Thai economy grow by 3.5 percent this year.

The University of the Thai Chambers of Commerce (UTCC) has released the May 2019 TCC Confidence Index, showing results from a survey of 370 Thai Chambers of Commerce members nationwide.

The TCC Confidence Index figure in May 2019 is recorded at 47.7, which is the lowest in 15 months, with lower indication scores in all regions including Bangkok and neighbouring provinces.

Consumption and investment performance has decelerated due to concerns regarding the forming of a new government, low farm product pricing affecting purchasing power, and the ongoing trade war between the U.S. and China affecting the Thai exports sector, the industrial sector, and trading sector.

UTCC’s Center for Economic and Business Forecasting Director Thanawat Ponvichai has described the Thai economy, especially local economies, as not robust, with farm product pricing becoming an issue in all regions, with only the tourism and service sectors in the eastern and northern regions performing above the median value of 50, indicating that the tourism industry is the key economic driver at the moment.

He said positive attributes can now be seen from improving farm product pricing in June, such as rice, palm oil, and rubber, while the establishment of the new government should lead to implementation of economic stimuli, especially disbursements of investment budgets, resulting in more hiring and procurement in various areas, as well as farm product price control measures, all of which are expected to help the Thai economy to grow by 3.8-4 percent in the latter half of 2019, pushing the annual growth this year to come in at 3.5 percent.l

Source link

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thailand’s Fastest-Growing Industries as the Nation Makes a Comeback

Tourism is being enabled greatly by foreign tourists being given a quarantine waiver, with an anticipated 5.5 million people set to visit the country this year. It’s an increase on the initial forecast, but still short of 2019’s 40 million foreign tourists.

Bangkok Moves Up to 6th in Global Ranking of Convention Cities

The top 10 convention cities for 2021 are Paris, New York, Singapore, Beijing, Tokyo, Bangkok, London, Barcelona, Istanbul, and Washington. In Asia-Pacific, the top 10 are Singapore,

How are emerging markets combatting cryptocurrency-related crime?

A record $14bn in digital currencies were transferred to illegal addresses last year, according to blockchain data platform Chainalysis, up 79% on the $7.8bn recorded in 2020.