Thai economy is nearly in crisis: caretaker finance minister

Published Wed, Aug 21, 2024 · 12:19 PM

Thailand, South-east Asia’s second-largest economy, grew 2.3 per cent in the April-June quarter from a year earlier, accelerating from the 1.6 per cent growth in the prior quarter. PHOTO: REUTERS

THAILAND’S economy is nearly in crisis due to declining exports and uncompetitive manufacturing, the country’s caretaker finance minister said on Wednesday.

Exports accounts for 70 per cent of the economy but the manufacturing sector can’t meet market demand, Pichai Chunhavajira told a business seminar.

“We can’t compete. We can’t adapt in time,” he said.

South-east Asia’s second-largest economy grew 2.3 per cent in the April-June quarter from a year earlier, accelerating from the 1.6 per cent growth in the prior quarter.

But quarter-on-quarter growth slowed to 0.8 per cent in the second quarter from the 1.2 per cent expansion in the previous three months.

The finance ministry predicts economic growth of 2.7 per cent for 2024, after last year’s growth of 1.9 per cent, which lagged regional peers.

Top Thai opposition party seeks to rein in Constitutional Court’s power after political upheaval

South-east Asia’s second-largest economy grew 2.3 per cent in April to June from a year earlier, the fastest pace in five quarters.

Thai central bank may face more rate-cut pressure from new PM

While inflation, at 0.83 per cent in July, remained below the BOT’s target range of 1 to 3 per cent, governor Sethaput Suthiwartnarueput said the current interest rate is appropriate and there is no need to cut despite the government’s repeated calls to lower it.

Thai central bank to hold rates until Q2 2025, political turmoil risks early cut

Thaksin faces royal insult charge as Thai court begins trial

The Bank of Thailand is widely expected to stand pat on Wednesday and keep the policy rate at the highest since 2013.

Thailand growth quickens even as US$14 billion stimulus hangs

"As head of the government I will work with parliament with an open heart, open to all ideas to help develop the country," Paetongtarn Shinawatra says.

Shinawatra heiress takes office as PM, vows to boost economy

Thailand's new Prime Minister Paetongtarn Shinawatra will hope to avoid the fate of her father and aunt, whose terms as PM both ended with the army seizing power in a tussle between the family and Thailand’s pro-royalist, pro-military elite fought over more than 20 years.

Paetongtarn Shinawatra: The new Thai PM with an old name

THE BUSINESS TIMES INSIGHTS

Powering Asean's Future 2026

Find out how enterprises are navigating power constraints and sustainability targets

ACCESS THE INSIGHTS

The central bank is widely expected to leave its key interest rate unchanged at a more than decade-high of 2.50 per cent for a fifth straight meeting later on Wednesday. REUTERS

Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.

Thailand

Share with us your feedback on BT's products and services

Feedback

TRENDING NOW

DBS’ Q3 net profit is down 5% at S$2.81 billion, largely due to weak markets trading income from unfavourable market conditions.

Analysts cut DBS target price on lower 2027 earnings, but see buying opportunity after share price slide

A Waymo Ojai autonomous vehicle, a China-made EV manufactured by Zeekr, on the road in Los Angeles, California.

Waymo founder predicts ‘landslide’ robotaxi adoption in Singapore, driven by high car costs

An "In Europe For Europe" sign beside an XPeng EV at the Paris Motor Show in Paris, France, on Oct 13.

The limits of China’s trade concessions to Europe

Nvidia CEO Jensen Huang’s net worth fell by US$15.1 billion to US$150.9 billion.

Nvidia CEO Jensen Huang drops from world’s top 10 richest after chips sell-off