Thai economy on strong footing despite recent stock selloff, says minister

THAILAND’S economic stability remains strong despite a recent selloff on its stock market, a deputy finance minister said on Thursday (Dec 14), stressing the decline did not reflect confidence in the economy or its stability.

The main stock index hit a three-year low on Wednesday, having dropped by more than 17 per cent so far this year, with foreign investors selling about US$5.68 billion of Thai shares.

“It could be a specific issue in the capital market, which we will have to find out,” Krisada Chinavicharana told reporters.

The main index rose about 1.3 per cent on Thursday in line with regional markets after the US Federal Reserve indicated that its tightening cycle is likely over and flagged rate cuts next year.

South-east Asia’s second-largest economy grew much lower-than expected 1.5 per cent in the July-September quarter from a year earlier, the slowest pace this year, on weak exports and government spending.

In October, the finance ministry reduced its 2023 economic growth forecast to 2.7 per cent from 3.5 per cent and projected growth of 3.2 per cent in 2024. The economy expanded 2.6 per cent last year. REUTERS