Thai growth upgraded amid lower US levies

Export outlook also given uptick

- SOMRUEDI BANCHONGDUANG

The local private sector has increased its forecast for Thai GDP growth this year to 1.8-2.2%, rising from an estimate of 1.5-2% following the recent US decision to reduce its tariffs on Thai exports to 19%, down from 36%.

At its meeting yesterday, the Joint Standing Committee on Commerce, Industry and Banking cited the US tariff reduction as a key factor contributing to the improved economic outlook.

The committee also upgraded its forecast for Thai export growth from a range of -0.5% to 0.3%, rising to a more optimistic 2-3% growth, aligning with positive global economic signals after the latest US tariff announcements for several countries.

Payong Srivanich, chairman of the Thai Bankers' Association, said the 19% reciprocal tariff imposed on Thai exports helps the nation avoid the worst-case scenario of losing competitiveness against neighbouring countries, which are now subject to similar tariff levels.