Economic slowdown, drought risk to hinder Thai economy in H2

The prospect of a domestic economic slowdown in the latter half of the year has been raised due to multiple factors, including potential drought, political uncertainties, and a slow global economy, according to the Employers’ Confederation of Thai Trade and Industry (EconThai).

EconThai’s vice-chairman, Tanit Sorat, highlighted that the global economy is predicted to experience growth of less than 2.1% in 2023. Factors such as an incomplete recovery of the Chinese economy and a diminishing US market are expected to impact Thai exports negatively, resulting in an economic slowdown.

In April, the Commerce Ministry unveiled a seventh consecutive month of decline in the customs-cleared value of exports, reflecting a 7.6% year-on-year decrease, amounting to US$21.7 billion. Meanwhile, imports fell by 7.3% to US$23.2 billion, culminating in a trade deficit…