Thailand's economy is nearly in crisis due to declining exports and uncompetitive manufacturing, caretaker Finance Minister Pichai Chunhavajira said on Wednesday.
Exports accounts for 70% of the economy but the manufacturing sector cannot meet market demand, Mr Pichai told a business seminar.
"We can't compete. We can't adapt in time," he said.
Southeast Asia's second-largest economy grew 2.3% in the April-June quarter from a year earlier, accelerating from the 1.6% growth in the prior quarter.
But quarter-on-quarter growth slowed to 0.8% in the second quarter from the 1.2% expansion in the previous three months.
The Finance Ministry predicts economic growth of 2.7% for 2024, after last year's growth of 1.9%, which lagged regional peers.
The Bank of Thailand (BoT) is widely expected to leave its key interest rate unchanged at a more than decade-high of 2.50% for a fifth straight meeting later Wednesday. However, uncertainty about the government's 145-billion-baht handout may prompt a fresh wave of rate-cut pressure.
Caretaker Finance Minister Pichai Chunhavajira. (Photo: Chanat Katanyu)
