The Thai private sector cuts GDP growth projection to 1.5%-2% for this year

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has decided to cut the GDP growth projection for this year to 1.5%-2%, from 2.0%-2.2%.

Payong Srivanich, president of the Thai Bankers Association, said yesterday that the adjustment of the growth projection is due to a global economic slowdown and uncertainty over negotiations between Thailand and the United States over the 36% reciprocal tariff, to be imposed on Thai products exported to the US market.

The two sides are yet to meet to discuss the tariffs.

He pointed out, though, that the US has just doubled the import tax on steel and aluminium from the European Union to 50%, adding that geopolitics may still impact the Thai economy.

Thai exports and private investment for the second half of this year are expected to slow, with export growth expected to be between -0.5% and 0.3%, down from 0.3-0.9%, while the Thai economy may grow by only 1%, depending on the outcome of Thai-US negotiations on the tariffs, said Payong.

For the Thai economy to grow by 2%, he said that it would be necessary for the government to inject about 70% of the 157 billion baht, previously allocated to funding the digital wallet scheme, into stimulating the economy and expanding long-haul tourist market, to replace declining Chinese tourist arrivals.