Thai economic growth dropped to 5.3 percent in the second quarter, official figures showed yesterday, as political uncertainty, soaring inflation and weak domestic demand hit the kingdom.
The National Economic and Social Development Board said GDP growth at an annual rate was down from a revised 6.1 percent in the first quarter of the year.
The board’s secretary-general, Amphon Kittiamphon, said the decline was because of lower government spending and a slowdown in private sector investment.
Despite that, the board forecast the Thai economy would likely grow between 5.2 percent and 5.7 percent this year, up from its May projection of 4.5 percent and 5.5 percent.
“If the government pushes forward with its mega projects including infrastructure construction, as well as creating confidence among investors, our GDP in the last six months of this year is most likely to be no less than 5.2 percent,” Amphon told reporters.
Volatile global oil prices have already prompted Thailand’s central bank to lower its growth estimates for this year to 4.8 percent to 5.8 percent. The finance ministry had initially projected 6 percent.
Inflation soared to a 10-year-high of 9.2 percent last month. The Bank of Thailand has estimated that inflation will average 7.5 percent to 8.8 percent this year.
Analysts said the second quarter slowdown likely indicated the Bank of Thailand will hike interest rates just once more this year from the current level of 3.5 percent. Its rate-setting committee is due to meet tomorrow.
“[These economic conditions] will limit central bank tightening,” Standard Chartered economist Usara Wilaipich told Dow Jones Newswires. “Therefore, we expect only one more 25-basis-point hike from the Bank of Thailand and this should be the last rate hike for the rest of this year.”
The central bank and the finance ministry have reportedly been at loggerheads over the interest rate and how to handle the inflation surge.
The English-language Bangkok Post reported last week that King Bhumibol Adulyadej voiced support for central bank governor Tarisa Watanagase.
Thailand’s government, which was formed in February, has been hit by street protests since May demanding the resignation of Prime Minister Samak Sundaravej.
Rumors of a coup circulated in May and June, and the general uncertainty has helped push the Thai stock market down nearly 18 percent since late May.
AI REVOLUTION: The event is to take place from Wednesday to Friday at the Taipei Nangang Exhibition Center’s halls 1 and 2 and would feature more than 1,100 exhibitors Semicon Taiwan, an annual international semiconductor exhibition, would bring leaders from the world’s top technology firms to Taipei this year, the event organizer said. The CEO Summit is to feature nine global leaders from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), ASE Technology Holding Co (ASE, 日月光投控), Applied Materials Inc, Google, Samsung Electronics Co, SK Hynix Inc, Microsoft Corp, Interuniversity Microelectronic Centre and Marvell Technology Group Ltd, SEMI said in a news release last week. The top executives would delve into how semiconductors are positioned as the driving force behind global technological innovation amid the artificial intelligence (AI) revolution, the organizer said. Among them,
When she was in fifth grade, Scarlett Goddard Strahan started to worry about getting wrinkles. By the time she turned 10, she and her friends were spending hours on ByteDance Ltd’s TikTok and Google’s YouTube watching influencers tout products for achieving today’s beauty aesthetic: a dewy, “glowy,” flawless complexion. Goddard Strahan developed an elaborate skin care routine with facial cleansers, mists, hydrating masks and moisturizers. One night, her skin began to burn intensely and erupted in blisters. Heavy use of adult-strength products had wreaked havoc on her skin. Months later, patches of tiny bumps remain on her face, and her cheeks turn
Intel Corp is working with investment bankers to help navigate the most difficult period in its 56-year history, people familiar with the matter said. The company is discussing various scenarios, including a split of its product design and manufacturing businesses, and which factory projects might potentially be scrapped, the people said, who asked not to be identified. Morgan Stanley and Goldman Sachs Group Inc, Intel’s longtime bankers, have been providing advice on the possibilities, which could also include potential mergers and acquisitions, the people said. The discussions have only grown more urgent since Intel delivered a grim earnings report, which sent the
Former Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman Mark Liu (劉德音) yesterday warned against the tendency to label stakeholders as either “pro-China” or “pro-US,” calling such rigid thinking a “trap” that could impede policy discussions. Liu, an adviser to the Cabinet’s Economic Development Committee, made the comments in his keynote speech at the committee’s first advisers’ meeting. Speaking in front of Premier Cho Jung-tai (卓榮泰), National Development Council (NDC) Minister Paul Liu (劉鏡清) and other officials, Liu urged the public to be wary of falling into the “trap” of categorizing people involved in discussions into either the “pro-China” or “pro-US” camp. Liu,