A research unit for a Thai commercial bank on Monday said it has further revised downward its gross domestic product (GDP) forecast for 2019 to 2.5 per cent from 2.8 per cent.
Kasikorn Research Centre warned that Thai businesses might face further risks including the strengthening of the Thai baht, drought and the repercussions to the minimum wage hike.
Accoding to Kasikorn Research Centre Assistant Managing Director, Nattaporn Triratanasirikul, the downward revision of the Thai economy is due to the lackluster export performance due to the global trade frictions and the strong baht.
He said the downward revision of the Thai economy was also due to the delay in the enactment of the budget expenditure bill for year 2020.
Loan growth from commercial bank next year is expected to stay unchanged at 3.5 per cent; non-performing loans may increase from 2019, while the banks’ fees are likely to grow not more than 1-2 per cent.
According to the business outlook, there may be additional impacts from the government’s policies, amid numerous challenges in 2020 report.
It also noted that the minimum wage rise might present a challenge to the business sector.
However, in property sector, Kasikorn Research Centre’s report said market had not recovered yet because there were about 200,000 unsold residential units in market for property developers yet to clear within a short period of time.
Meanwhile, the report indicated that the tourism market would continue to thrive, as inbound tourism markets including China, India, as well as domestic tourism would help create travel related business opportunities in Thailand.
Thailand’s tourism accounts for as much as 18 per cent of the Thai GDP.
