BANGKOK (Reuters) – Thailand’s economy is expected to grow 2.5% to 3.0% this year, down from a previous forecast of 3.0% to 3.5%, due to declining exports and public expenditure, and weaker tourism spending, a leading business group said on Thursday.
Exports, a key driver of the Thai economy, are expected to fall 0.5% to 2% this year, said the Joint Standing Committee on Commerce, Industry and Banking, which includes representatives from those sectors.
Southeast Asia’s second-largest economy has clearly weakened after growing just 1.8% year-on-year in the second quarter, sharply slowing from the previous quarter, the group said in a statement.
Thailand’s economy expanded 2.6% last year.
The business group urged the government to introduce measures to stimulate the economy this year, including steps to boost the tourism sector, also a key growth driver.
It added that the central bank’s current benchmark interest rate was already at the balanced level at 2.25%.
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(Reporting by Kitiphong Thaichareon and Satawasin Sta[censored]chanchai; Writing by Orathai Sriring; Editing by Alison Williams and Helen Popper)