BANGKOK- Thailand’s economy is expected to grow 2.4 percent this year, down from a previous forecast of 2.8 percent, the finance ministry said on Monday, owing to a softening in exports and manufacturing and the impact of drought on agriculture.
Southeast Asia’s second-largest economy expanded 1.9 percent last year, slower than expected and less than 2.5 percent growth in 2022.
The ministry also revised down its annual exports projection to growth of 2.3 percent compared to a January forecast of 4.2 percent , while lowering its inflation outlook to 0.6 percent from 1.0 percent seen earlier.
The ministry said the economy was still stable despite the downward revision, and said disbursement of the recently approved fiscal budget would help drive growth.
Thailand’s customs-based exports fell 10.9 percent in March from a year earlier, data showed earlier on Monday, compared to a forecast for a 4.5 percent year-on-year fall in a Reuters poll, following February’s 3.6 percent rise.
The weaker growth expectations come after former energy executive Pichai Chunhavajira was named the next finance minister at the weekend.
Reuters reported the plan on Thursday to appoint Pichai, 75, an adviser to Prime Minister SretthaThavisin, who currently holds the finance portfolio himself.
