BANGKOK (Reuters) -Thailand’s economy is expected to grow 2.4% this year, down from a previous forecast of 2.8%, 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% last year, slower than expected and less than 2.5% growth in 2022.
The ministry also revised down its annual exports projection to growth of 2.3% compared to a January forecast of 4.2%, while lowering its inflation outlook to 0.6% from 1.0% 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% in March from a year earlier, data showed earlier on Monday, compared to a forecast for a 4.5% year-on-year fall in a Reuters poll, following February’s 3.6% 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 Srettha Thavisin, who currently holds the finance portfolio himself.
Pichai joins the cabinet at a time when the government has been at odds with the Bank of Thailand over its planned $13.5 billion handout scheme and the BOT’s interest rate settings, which have been kept steady at 2.50%.
The economy has lagged behind regional peers, held back by high household debt and borrowing costs, as well as China’s slowdown.
(Reporting by Kitiphong Thaichareon, Satawasin Staporncharnchai and Chayut Setboonsarng; Editing by Martin Petty)
