Thai enterprise group sees GDP progress at 2.8% this 12 months, dangers forward

BANGKOK (Reuters) – Thailand’s economic system is predicted to develop 2.8% this 12 months, the highest finish of a earlier forecast vary of two.6% to 2.8%, helped by stronger exports and authorities spending, a number one joint enterprise group stated on Wednesday.

Exports, a key driver of progress, at the moment are projected to rise 4% this 12 months, up from a variety of two.5% to 2.9% progress seen beforehand, stated the Joint Standing Committee on Commerce, Business and Banking, which incorporates representatives from these sectors.

The baht at round 34 per greenback is supporting shipments, Sanan Angubolkul, chairman of the Thai Chamber of Commerce, instructed a press convention.

The injury of floods in elements of the nation this 12 months is predicted at as much as 85 billion baht ($2.5 billion), or 0.6% of gross home product (GDP), Sanan stated.

Nonetheless, the economic system would develop 4% yearly within the remaining quarter of this 12 months and broaden additional subsequent 12 months, he stated.

“There’s nonetheless a danger for the economic system in 2025. It doesn’t matter what, there will probably be a commerce conflict,” Sanan stated.

The group will supply 2025 GDP progress outlook in January. The finance ministry has forecast progress of three% for 2025.

Thailand’s economic system grew 3% yearly within the July-September quarter of 2024, the quickest tempo in two years, however officers and analysts see elevated challenges to sustaining the momentum subsequent 12 months.

Southeast Asia’s second-largest expanded simply 1.9% in 2023, lagging regional friends. It has struggled beneath excessive family debt and borrowing prices in addition to sluggish demand from main buying and selling associate China.

($1 = 34.28 baht)