Thai economy grew by 2.8 percent in the first quarter of this year (Photo: The Straits Times) Bangkok (NNT/VNA) - The fluctuating global economy and the tradewar between China and the US which has reduced the export sector has caused theThai economy in the first quarter of this year to grow at a slower pace, at 2.8percent compared to 3.6 percent in the last quarter of 2018.
For 2019, the Office of the National Economic and Social DevelopmentBoard (NESDB) has revised its economic forecast to 3.3-3.8 percent.
NESDB Secretary General Thossaphorn Sirisamphan said the main factorsthat caused the Thai economy to slow down include the fluctuating globaleconomy and the trade war between China and the United States. The value of theexport sector in the first quarter decreased by 3.6 percent, especially thevalue of agricultural products exports which decreased by two percent from 6.5percent in the previous quarter. As a result, the economy in the first quartergrew only by 2.8 percent.
The NESDB has, therefore, revised its economic forecast to 3.3-3.8percent from 3.5-4.5 percent with exports seen up 2.2 percent from 4.1 percent.This estimated number must be based on the improved export sector in the secondhalf of the year. The tourism sector must earn 2.21 million baht from foreigntourists. The clarity of the political situation will result in moreinvestments in government projects and economic stimulus policies.
As for the new government’s economic policy, the NESDB opined that itshould focus on reducing the impact on the export sector and stimulating thetourism sector to compensate for the lost income instead of fully implementingshort-term economic stimulus policy because it may cause problems to the futurefiscal burden if the global economy does not recover next year. Therefore, itis necessary to proceed carefully.-NNT/VNA
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