Bangkok: The Thai economy continues to face significant challenges, with SCB EIC forecasting a modest growth of only 0.7% in the second half of the year.
According to Thai News Agency, Dr. Yanyong Thaicharoen, Chief Executive Officer of SCB EIC, highlighted the economic hurdles on Channel 9 MCOTHD's "Minute Investment" program, Channel 30. He noted that the baht has been steadily appreciating, gaining over 8% since the beginning of the year, and is among the top performers in the region. This appreciation has exerted pressure on the country's exports and tourism sector. Despite a recent interest rate cut by the Fed, the baht is expected to remain in a strong range of 31-32 baht per US dollar by year-end due to the weakening dollar and Thailand's significant gold exports.
Economic challenges include slowing exports and private spending, with the Thai economy projected to grow by only 0.7% in the latter half of 2025, following a 3% growth in the first half. Dr. Yanyong advised the government to quickly implement short-term economic stimulus measures and establish medium-term strategies. Immediate actions should involve announcing clear goals to build confidence among stakeholders and expediting budget disbursements, investment, and relief funds, such as the "Half-Half" scheme and tourism stimulus measures.
For medium-term strategies, Dr. Yanyong emphasized the need to reduce business operation obstacles, engage in foreign trade negotiations, promote sustainable investment, and establish foundations for new economic sectors. The Bank of Thailand is urged to manage financial sector tensions by reducing interest rates, maintaining a suitable exchange rate, and providing low-interest loans and guarantees for SMEs to facilitate access to funding.