Thailand’s Economic Crisis

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

Exports account for 70% of the economy, but the manufacturing sector can’t meet market demand, Pichai Chunhavajira stated at 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 compared to a year earlier, up from 1.6% in the previous quarter. However, quarter-on-quarter growth slowed to 0.8% in the second quarter, down from 1.2% in the prior three months.

The finance ministry predicts economic growth of 2.7% for 2024, following last year’s growth of 1.9%, which fell behind regional peers.

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