Thai GDP Growth Forecast Raised

Thai business associations raised their 2018 economic forecasts on Tuesday, citing stronger exports and increased domestic demand, Reuters reported. The upgrade suggests Southeast Asia’s second-largest economy is gaining momentum, though growth is heavily reliant on exports and continues to lag regional peers. The group slightly raised its 2018 economic growth forecast to 4.0-4.5%, from 3.8-4.5%. Exports are now expected to increase 5.0-8.0% this year, up from 3.5-6.0% seen earlier. Higher imports of capital goods suggest improving manufacturing and domestic spending, Chen Namchaisiri, chairman of a joint committee of the Federation of Thai Industries, the Thai Bankers’ Association and the Thai Board of Trade of Thailand, told a briefing. The groups are worried about trade tension between China and the United States, though it is not expected to lead to any trade war, Chen said. The Thai National Shippers’ Council on Tuesday also raised its 2018 export forecast, to at least 6% from 5.5%, though the baht’s strength is cutting export revenue in baht terms.