UTCC lowers Thailand’s 2023 economic growth forecast to 2.5%

The University of the Thai Chamber of Commerce (UTCC) has lowered its economic growth forecast for 2023 to 2.5%, a dip from the previous prediction of 3% made in October of the previous year. The UTCC also anticipates a growth rate of 3.2% for the current year.

The UTCC’s president, Thanavath Phonvichai, linked this downgrade to the third quarter’s lower-than-expected 1.9% GDP growth rate. Factors like the sluggish recovery of the Chinese tourist influx and the lack of a fiscal 2024 budget, which has reduced fiscal stimulus, have impacted consumption and state investment, thereby contributing to the slump, he indicated.

A consistent drop in stock levels, particularly in the industrial goods category, is another contributing factor. Producers’ uncertainty about demand for new products has led to production delays and the slow release of existing…