Thailand's economic outlook for this year appears less optimistic as GDP growth could tally 2.2%, down from the previous projection of 2.8-3.3%, attributed to sluggish exports weighing on the manufacturing sector, according to the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB).
Economic growth is estimated in a range from 2.2-2.7%, with export expansion decreasing to 0.5-1.5%, down from 2-3%, while inflation declining to 0.5-1%, a drop from 0.7-1.2%, noted the panel.
The downgrade is attributed to a decrease in global trade growth from 3.3% to 3%, blamed on conflicts in the Middle East and Ukraine, said Kriengkrai Thiennukul, who chaired the JSCCIB meeting on Wednesday.
Mr Kriengkrai, also chairman of the Federation of Thai Industries, cited the latest global trade estimate from the International Monetary Fund.
This outlook will affect Thai exports, which already fell by 0.2% in value year-on-year during the first quarter this year, attributed to the global trade slowdown, according to JSCCIB.
Sluggish exports have plagued the manufacturing sector, said the panel.
Thailand's Manufacturing Production Index fell by 5.13% year-on-year to 104 points in March, declining for an 18th consecutive month, according to the Office of Industrial Economics.
Capacity utilisation decreased by 4.4 percentage points to 62.3% this month.
These economic indicators signal the government should not push ahead with a controversial proposal to increase the daily minimum wage to 400 baht nationwide, which is "too high", said the JSCCIB.
The committee supports the Thai Chamber of Commerce, a key member of the JSCCIB, in calling for the government to cancel the wage rise, scheduled to take effect on Oct 1.
The JSCCIB said it is preparing to submit a letter to the Labour Ministry, asking it to reconsider the wage hike proposal.
The wage increase will affect several businesses, especially those with labour-intensive manufacturing and small entrepreneurs such as street food vendors, said Mr Kriengkrai.
These businesses are struggling to deal with high energy costs and people's weak purchasing power, he said.
The nationwide daily minimum wage for Thais rose on Jan 1, with the new rates varying between provinces, ranging from 330 to 370 baht. The increases ranged from 2 to 16 baht, averaging 2.37%.
The tripartite wage committee later approved an increase to 400 baht for tourism-related businesses and four-star hotels with at least 50 employees in 10 provinces, taking effect on April 13.
The government has said it wants to push for further minimum wage increases for other areas and business types.