MAYBANK RESEARCH LOWERS THAILAND’S GDP GROWTH PROJECTION

BANGKOK, March 26 (Bernama) -- Maybank Research of Singapore has lowered Thailand's 2024 gross domestic product (GDP) forecast to 2.9 per cent from 3.2 per cent.

In its research note today, it said the move was due to the country’s recent net exports and manufacturing performance, coupled with the soft auto sector.

“We expect the Bank of Thailand to cut its policy rate by 25 bps to 2.25 per cent at its upcoming meeting on April 10 to bring the policy setting to a more neutral one, in line with growth and inflation developments,” Maybank said.

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It maintains next year’s GDP growth forecast at three per cent.

However, Maybank said Thailand’s merchandise exports rose for the seventh consecutive month in February but the pace of growth moderated.

The tech sector continued its recovery, with electronics exports up 12.5 per cent while auto shipments dropped by 8.2 per cent, reflecting intensifying competition from China.

“Performance varied across markets and industries, with shipments to the US outperforming those to China and Asean, and the tech recovery diverging from sluggish autos,” it said.

Maybank said the United States of America (US) remained the key driver of Thai exports, with demand growing by 15.5 per cent.

“Shipments to Asean will take a breather after a spurt of strong growth while those to China and Japan contracted as domestic demand in these two markets remained sluggish.

“For the rest of 2024, export performance will continue to be dictated by strength in US demand, alongside sustained softness in Chinese orders,” it said.

-- BERNAMA