JSCCIB cuts Thailand’s GDP growth forecast

JSCCIB Chairman Supant Mongkolsuthree (Photo: www.bangkokpost.com)

Bangkok (VNA) – The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has reduced its GDP growth forecast for Thailand to 0.5-2 percent from 1.5-3 percent due to the severe impact of the third COVID-19 outbreak despite bright export prospects this year.

The Bangkok Post quoted JSCCIB Chairman Supant Mongkolsuthree as saying that even the Thai government’s plan to reopen Thailand by allowing vaccinated foreign tourists to visit Phuket without quarantine later this year may not be enough to restore the domestic economy.

Exports appear to have a positive outlook as the group believes they will grow 5-7 percent, up from its 4-6 percent estimate.

However, the JSCCIB has maintained its 1-2 percent inflation rate prediction.

Supant, who is also chairman of the Federation of Thai Industries, said that as the third wave of COVID-19 remains volatile, economic recovery may take a long time as people's purchasing power and employment have been affected.

The worst COVID-19 outbreak so far in Thailand has dealt a heavy blow to economic sentiment. The JSCCIB has urged the government to speed up spending under its plan to borrow an additional 700 billion THB (22.3 billion USD) to revitalise the economy.

The Bank of Thailand said that the Thai financial system has become more vulnerable due to negative shocks from the recent COVID-19 outbreak./.

VNA