Thai business group cuts 2023 GDP growth outlook to 2.5%-3.0%

BANGKOK : Thailand's economy is expected to grow 2.5 per cent to 3.0 per cent this year, down from a previous forecast of 3.0 per cent to 3.5 per cent, due to declining exports and public expenditure, and weaker tourism spending, a leading business group said on Thursday.

Exports, a key driver of the Thai economy, are expected to fall 0.5 per cent to 2 per cent this year, said the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from those sectors.

Southeast Asia's second-largest economy has clearly weakened after growing just 1.8 per cent year-on-year in the second quarter, sharply slowing from the previous quarter, the group said in a statement.

Thailand's economy expanded 2.6 per cent last year.

The business group urged the government to introduce measures to stimulate the economy this year, including steps to boost the tourism sector, also a key growth driver.

It added that the central bank's current benchmark interest rate was already at the balanced level at 2.25 per cent.