Private sector cuts export growth forecast

Private sector cuts export growth forecast

Business leaders in three industries have revised down their forecast for the country's export growth this year to a range between zero and 2% from 2% in their earlier projection.

While exports rose for the first time in 14 months in February, they did not indicate a recovery due to gold and an extraordinary item, Suphan Mongkolsuthee, chairman of the Joint Standing Committee on Commerce, Industry and Banking, said after the panel's meeting on Monday.

Commerce Ministry data showed February exports were bolstered by a 10-fold jump in gold shipments. Excluding the item, the export growth would have been 0.2% year-on-year.  

 "The fledgling world economy recovery continues to put pressure on Thai shipments. We project export growth this year at zero to 2%, down from 2% we forecast earlier," he said.

Improving the competitiveness of Thai products to support the changing world trade structure could allow Thai exports to recover, the panel said.

Mr Suphan added the overall economy in February was steady, propped mainly by public spending and tourism, while consumption and private investment remained lacklustre.

 "Growth will be boosted when the government passes a mid-year budget, introduces more economic stimulus measures, accelerates megaprojects and promotes tourism.

"The economy will therefore expand within the previously forecast range between 3% and 3.5% while inflation will remain low, at zero and 1%," Mr Suphan said.

The committee will propose that the Board of Investment support overseas investments by Thai operators so they can compete better internationally.

It will also ask the Revenue Department to consider tax privileges on such investments and revenue repatriation, he added.   

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