Thai economy loses steam: UTCC’s growth forecast trims to 3%

With an anticipated dip in exports and a delay in state budget preparation, the University of the Thai Chamber of Commerce (UTCC) revised its economic growth forecast for the current year to 3%, a decline from the previously estimated 3.6% in December last year.

The revised growth forecast is reflective of new government measures aimed at lowering the cost of living, which include reductions in electricity and fuel prices along with debt suspension programmes. The Thai economy is also expected to benefit from an estimated 100 billion baht boost from foreign tourist revenue.

The UTCC president, Thanavath Phonvichai, noted that the postponement in budget preparation for fiscal 2024 has directly impacted government investment. This, paired with a reduction in exports and the ongoing drought, has imposed an economic burden of 200 billion baht.

Taking these adverse factors into…