Thai economy is nearly in crisis, caretaker finance minister says
A vendor looks at a mobile phone at her fruit stall at a market, in Bangkok, Thailand, on Oct 2, 2023. (Photo: REUTERS/Athit Perawongmetha)
BANGKOK: Thailand's economy is nearly in crisis due to declining exports and uncompetitive manufacturing, the country's caretaker finance minister said on Wednesday (Aug 21).
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.
Southeast 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.
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.
