Thailand
Thailand: Private sector sees no export growth this year
The Joint Standing Committee on Commerce, Industry and Banking has lowered its forecasts for both economic and export growth this year, and called for monetary and fiscal measures to protect the economy.
The JJSCCIB revised its 2019 economic growth projection from 2.9-3.3% to 2.7-3.0% and export growth forecast from -1.0-1.0% to -2.0-0.0%, in a statement released on Wednesday.
Data in July and August showed that economic weakness continued from the first half of this year into the third quarter, the committee statement said.
It blamed the global economic slowdown, the trade war between China and the United States and the baht’s appreciation. Alt this was reducing exports and affected production, the committee said.
Meanwhile, domestic consumption and investment were losing their momentum. The number of visitors was picking up but that was partly because of a low base last year, it said.
The revision of export and gross domestic product predictions had taken into account various economic stimulus measures from the government, the JSCCIB said.
Apart from spending acceleration for the 2020 fiscal budget, the private sector hoped the government would introduce monetary and fiscal measures to protect the economy. That could include the quotation of products in baht or local currencies, JSCCIB said.
The committee estimated recent flooding caused economic damage amounting to 20-25 billion baht. It called for special economic stimulus measures for Ubon Ratchathani province, which suffered its worst flood in 40 years.
The JSCCIB considered as successful the government’s cash giveaway and cash rebate scheme for consumers and domestic tourists. It said the scheme should cause 20-30 billion baht to circulate through the economy and boost economic growth by 0.1-0.2%.
Finance Minister Uttama Savanayana said on Wednesday he was no longer sure the economy would expand by 3% this year as earlier expected.
Source: https://www.bangkokpost.com/business/1763344/private-sector-sees-no-export-growth-this-year