UTCC forecasts 3.8% economic growth this year

The University of the Thai Chamber of Commerce (UTCC) has maintained its economic growth forecast for this year at 3.8 percent. It is not yet able to evaluate the expected new government that must expedite economic stimulation in the second half of the year to build confidence for investors.

Mr. Thanawat Pholwichai, Director of the UTCC’s Center for Economic and Business Forecasting, says the center continues to maintain its economic growth forecast at 3.8 percent and it has forecast that the country’s exports will grow by four percent.

However, there is a chance that the export expansion will be below expectations because the establishment of a new government has not yet occurred and exports are still affected by the global economy. Therefore, it’s likely that expansion will be only 2-3 percent.

 The center opined that the government has to issue economic stimulus measures to maintain the economy in the first half of the year and allow it to grow at 3.5 percent. However, any stimulous measures must address problems at the right point.

 The center also thinks it is still necessary to inject money into the local economic system. Although a budget was allocated to stimulate the local economy, the outcome wasn’t satisfactory. This indicates that problems in the local economy are more entrenched than previously thought.

 As for export stimulus measures, despite the global economic slowdown and trade war, it is still necessary for the baht to depreciate in order to maintain competitiveness.

 With the establishment of a new government, it is necessary to move forward as planned and support economic activities from August to accelerate economic stimulation in the second half of the year and build confidence that encourages private sector investment.