Thailand’s economy almost in crisis due to declining exports: Finance Minister
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Thailand's 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.
PHOTO: REUTERS
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BANGKOK - Thailand’s economy is nearly in crisis due to declining exports and uncompetitive manufacturing, said the country’s caretaker Finance Minister on Aug 21.
Exports account for 70 per cent of the economy, but the manufacturing sector cannot meet market demand, Mr Pichai Chunhavajira told a business seminar.
“We can’t compete. We can’t adapt in time,” he said.
South-east 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 2023’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 2.5 per cent, at a fifth straight meeting later on Aug 21. REUTERS
