Economists believe Thai GDP forecasts should be lowered due to a decline in domestic investment, citing the National Economic and Social Development Council’s report that the Thai economy expanded by just 2.3% year on year in the second quarter.
Second-quarter investment dropped by 6.2%, driven by a decline in private investment in transport, capital goods and construction.
Somprawin Manprasert of Siam Commercial Bank’s Economic Intelligence Centre, painted a gloomy picture for the second half of 2024, saying he expects the country’s economy to fall further in response to the global economic slowdown.
He said the centre would cut this year’s GDP forecast of 2.5% expansion due to a significant decline in private investment, which reflects a decline in production. Although production for domestic consumption has expanded, production for export has dropped.
“The figures show that Thailand’s competitiveness is declining,” he said, adding that the Thai economy could expand by just 1% this year.
He said Thailand needs measures to stimulate domestic investment rather than consumption. He expects the Bank of Thailand’s Monetary Policy Committee to maintain the policy interest rate at 2.5%, but hoped it would be lowered at the end of the year.
