BANGKOK (Reuters) – Thailand’s economy is expected to grow 3.0% to 3.5% this year, a leading joint business group said on Wednesday, unchanged from its previous forecast as the tourism sector gathers strength but exports remain sluggish.
Exports are forecast to be flat or fall by 1% this year, while 30 million foreign tourists are expected in 2023, said the group, which has representatives from industry, banking and commerce. The economy expanded 2.6% in 2022.
While Southeast Asia’s second-largest economy remains on its recovery path, driven by the tourism sector, slowing global growth continues to affect Thai exports, which contracted for seven straight months, the group said in a statement.
“If exports don’t recover, other related industries will also be hit,” it said.
The business sector is also concerned about higher interest rates and inflation, particularly if wages are raised in the future, the group said.
A hike in the daily minimum wage to 450 baht ($12.95)promised by the election-winning Move Forward party, would increase inflation by 0.82 percentage point, the group said.
($1 = 34.7600 baht)
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Martin Petty)
