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Thai economy is nearly in crisis, caretaker finance minister says

Published 08/20/2024, 11:04 PM
Updated 08/20/2024, 11:14 PM
© Reuters. A vendor looks at a mobile phone at her fruit stall at a market, in Bangkok, Thailand, October 2, 2023. REUTERS/Athit Perawongmetha/Files

BANGKOK (Reuters) - Thailand's economy is nearly in crisis due to declining exports and uncompetitive manufacturing, the country's caretaker finance minister said on Wednesday.

Exports accounts for 70% of the economy but the manufacturing sector can't meet market demand, Pichai Chunhavajira told a business seminar.

"We can't compete. We can't adapt in time," he said.

Southeast Asia's second-largest economy grew 2.3% in the April-June quarter from a year earlier, accelerating from the 1.6% growth in the prior quarter.

But quarter-on-quarter growth slowed to 0.8% in the second quarter from the 1.2% expansion in the previous three months.

© Reuters. FILE PHOTO: A vendor looks at a mobile phone at her fruit stall at a market, in Bangkok, Thailand, October 2, 2023. REUTERS/Athit Perawongmetha/File Photo

The finance ministry predicts economic growth of 2.7% for 2024, after last year's growth of 1.9%, which lagged regional peers.

The central bank is widely expected to leave its key interest rate unchanged at a more than decade-high of 2.50% for a fifth straight meeting later on Wednesday.

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