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Thai export forecast given upgrade
The business sector has revised up the growth outlook for Thai exports this year to 2-3.5% amid the global economic recovery that has helped boost demand, says the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).
The revision, up from an earlier forecast of 1-3%, is based on expected GDP growth of 3.5-4%, said the chairman of the Thai Chamber of Commerce, Kalin Sarasin, who chaired the JSCCIB meeting yesterday. In the first quarter of 2017, Thai exports rose 4.9% from the same period last year to US$56.5 billion (1.95 trillion baht) due to rising demand in several industries such as electronics, rubber, plastics, petrochemicals and auto parts.
“Thailand’s economy is growing in line with the recovering global economy. Our forecast for rising exports is based on major importers such as China, Japan, the EU and Britain bringing in more goods,” he said. Mr Kalin said the International Monetary Fund has also revised its global economic growth forecast to 3.5% this year, up from the previous forecast of 3.4%, signalling that global demand should be better.
As result, the JSCCIB said Thailand’s economic outlook in the second half should be better than in the first, as several positive factors were expected to support the economy.
The business sector also expects Thailand and the United States to strengthen bilateral ties after a series of issues had had an impact on the Thai economy over the past several years, said Poj Aramwattananont, vice-chairman of the Thai Chamber of Commerce.
He that better relations between Thailand and the US, a major importer of Thai goods, could help boost trade.
Recently, US President Donald Trump called the leaders of Singapore and Thailand to discuss tensions on the Korean peninsula. Mr Trump further asked the two Asean leaders to visit the White House to discuss a range of issues.
“We see this is a good sign for Thailand to improve its relationship with a major partner such as the US. This is a good start since the US has not held any meetings or talks for several years. A potential official visit of the Thai leader to the US would be a good sign,” said Mr Poj.
But he said the JSCCIB would monitor Thai exports and the trade balance closely to make sure Thai exports keep rising and the trade balance remains in positive territory.
Apart from exports, the JSCCIB also expects the Thai government’s massive investment in infrastructure projects to be another positive factor lending support to the country’s economic recovery.
But JSCCIB still wants the Thai government to rev up its infrastructure projects, particularly in remote areas, as they will provide jobs and improve people’s purchasing power.
Source: http://www.bangkokpost.com/business/news/1242598/thai-export-forecast-given-upgrade