Private sector sees 4-4.5% growth of Thai economy

BANGKOK, April 4 (TNA) -- The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) raised its 2018 economic forecasts on Tuesday, citing stronger exports and increased domestic demand. JSCCIB, representing the three major Thai private institutions namely the Board of Trade of Thailand, the Federation of Thai Industries and the Thai Bankers' Association has projected that the national economy should further grow by 4-4.5 per cent year-on-year in 2018. Exports are now expected to increase 5.0-8.0 percent this year, up from 3.5-6.0 percent seen earlier while the inflation should lower from around 1.1-1.6 per cent to 0.7-1.2 per cent. The baht's value is expected to hover at 31-32 baht to the US dollars at the end of this year because of the growing of the global economy. The growth of the export sector, travel and tourism sector will continue to be strong. However, there are still challenging issues that could affect Thailand’s economic growth. These issues include the trade disputes between the US and various countries particularly the tit-for-tat in tariffs between the US and China. China imposed $3 billion worth of tariffs on 128 US products in retaliation against a series of trade tariffs on Chinese goods in the US. Pimchanok Vonkorpon, Director-General at Trade Policy and Strategy Office says the trade disputes between the US and China should not have serious negative direct impacts on Thailand at the moment. However, she says that Thailand should closely monitor the situation if there are additional measures imposed that may affect Thailand. The Thai National Shippers' Council views that the US-China trade disputes that could lead to the trade war will have both positive and negative to Thailand. In positive aspect, the US and China may import more goods from other countries to replace commodities of each other. The move could help Thailand to export more goods to the two countries. On the other hand, the US and China will seek the replacement of their export markets which could see more products from the US and China influx into ASEAN. Strong competition could be seen. The Thai exporters, therefore, should monitor and evaluate the impact from the trade disputes. In the meantime, the Thai National Shippers’ Council also raised its 2018 export forecast, to at least 6 percent from 5.5 percent. (TNA)