BANGKOK, June 8- The CRC recommends increasing purchasing power while waiting for the establishment of a new state. accepted half a year late GDP shrinks to 1-2 percent, affecting the Thai economy Concerned about increasing wages to 450 baht, inflation rising to 0.82 percent, writing to the Prime Minister Accelerate drought problems
Mr. Payong Srivanich, chairman of the joint committee of 3 public-private institutions, said that the CRC meeting viewed that the global economy in the second half of the year may recover less than expected. After the global economy in the second quarter of 2023 slowed down because the Chinese economy did not recover strongly. United States economy and Europe face pressure from interest rate environment and high inflation. The second quarter recovery was slower than expected. causing the global economy in the second half of the year to slow down Until a big country like China has a policy to stimulate the economy.
As for the Thai economy, the recovery continued due to tourism and consumer confidence. The Thai economy continued to expand due to the recovery of the tourism sector. It is expected that there will be up to 30 million foreign tourists every year, which is a factor supporting employment. and generate income to the country. In addition, income in the agricultural and agro-industrial sectors also expanded. Make consumers have the power to spend more consumption. While the industrial sector and exports of industrial goods have been affected by the slow recovery of the global economy. Exports in 2023 are expected to contract by -1.0-00% compared to the previous year, GDP growth of 3-3.5%, inflation rate of 2.7-3.2%, with inflation remaining a challenging factor after the MPC. Raise the policy rate by 0.25 percentage points to 2 percentage points and are likely to continue to upgrade as core inflation remains high.
“The problem of drought was seen by the CRC meeting as having a high impact. After the world faced the problem El Niño this year May cause damage to the economy of 36,000 million baht. The CRC therefore sent a letter to the Prime Minister on May 31, 2023, proposing to accelerate the preparation of measures to deal with drought. both in the immediate and long term Looking at the problem of drought and flooding It is a ton of capital for the opportunity cost of the country, ”said Mr. Phayong.
However, there are factors that may affect inflation in the future, for example, raising the minimum wage to 450 baht per day could raise inflation to 0.82 percent if there is no appropriate increase in labor skills and labor productivity along with the adjustments. change Diesel prices may increase If the measures to reduce the excise tax on diesel fuel by 5 baht per liter ends on July 20, 2023, it will be a ton of transportation costs for entrepreneurs. These factors will put pressure on capital of both entrepreneurs and households. In addition, the policy rate hike may aggravate the capital of entrepreneurs, especially SMEs, since it is believed that the MPC’s policy interest rate adjustment must maintain a balance between the Thai economy that has not fully recovered and is not thorough to help support the economy to recover continuously
In addition, the CRC meeting still viewed the tourism industry as the main engine. that helps to move important economy now Taking care of tourists to be convenient and safe will be an incentive to attract more foreigners to choose to enter the country more. The government should continue to support measures to build confidence for tourists. In addition, the bottleneck problem in increasing the number of aircraft for Thai airlines. It is also an obstacle to tourism. which, if able to solve the problems of airlines sufficiently In addition, water shortages must be solved in important tourist areas. especially on the island
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However, Thailand has more opportunities to attract businessmen from abroad to invest and work as a hub due to the virtue of geopolitical conflicts resulting in the relocation of production bases. Since Thailand is considered a target for global investors, the government should improve infrastructure to support investment. especially the reform of the law Rules to raise
Ease of doing business, such as improving visa reforms to make it more convenient and faster, etc. The CRC meeting was concerned. about the global economic slowdown that affects exports which has been negative for 7 consecutive months, causing orders to decrease But the industry still needs to maintain production. to support the employment of workers to not be affected If exports have not yet recovered may affect
Industries that rely mainly on exports, with 19 industry groups out of 45 industry groups, such as construction materials. Furniture machinery is a production to nurture the business and take care of the labor sector in the factory only. If there are additional risk factors More serious problems may occur.
Mr. Kriengkrai Thiennukul, President of the Federation of Thai Industries (FTI), said that it is not possible to rely solely on machinery from tourism. Therefore, it must rely on stimulating domestic consumption. Despite some limitations during the interim government There are still enough channels to stimulate purchasing power. Because now the cost of living is higher than the income of workers. Please be strict with online shopping. Affecting the sales of 19 groups of SMEs, now entrepreneurs produce subsistence products and take care of workers. must find ways to increase funding sources for SMEs while waiting for the establishment of a new government in August If the establishment of the government is delayed, measures to attract investment from foreigners may not be able to wait Make the projected plan, if postponed 1-2 months, may be able to wait If postponed half a year or a year, foreign investors would flee to other countries to invest instead. and may raise the original GDP forecast of 3-3.5 percent to 1-2 percent .-Thai News Agency
Source: Thai News Agency