Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has kept the economic growth forecast for 2024 for Thailand at 2.8%-3.3% and is pushing the government to reduce interest rates, boost the economy and speed up the disbursement of the 2024 fiscal budget.
JSCCIB president Kriengkrai Thiennukul mentioned that, even though the estimation for GDP growth this year stays the same, the Thai economy is encountering significant risks from structural limitations, a decrease in exports and a weakening in domestic consumption.
Therefore, the economy requires significant support from the government, such as measures to stimulate growth, a cut in interest rates, and prompt disbursement of the budget.
He noted that the export of hard drives, plastic products, and automobiles is slowing, while car tire and processed meat exports are increasing.
He observed that there are, however, positive signs of economic recovery in the United States and China, which are major export markets for Thailand, and this will help lift Thai exports.
Because of increasing geo-political conflicts that could potentially impact Thailand in the long term, Kriengkrai advised the government to maintain a careful balance to avoid any involvement that may harm the country’s interests.
He also urged the government to aggressively tackle the issue of low-quality imported goods being sold online by imposing VAT on online transactions under 1,500 baht, in order to safeguard Thai SMEs.
The government should also step up random checks on items in tax free zones to ensure that importers accurately declare the volume and value of their imported goods, especially substandard products that, according to Kriengkrai, are negatively impacting more than 20 industrial groups, predominantly SMEs, in Thailand.
