K-Research puts GDP growth at 1.2%

GDP growth this year could be as low as 1.2% or even less if the government fails to clinch a deal with the US that ensures the reciprocal tariff is competitive with those granted to neighbour-ing countries, said Kasikorn Research Centre (K-Research).

- NAREERAT WIRIYAPONG

The think-tank has maintained its growth forecast at 1.4% this year, but Burin Adulwattana, K-Research's managing director and chief economist, referred to the current downside risks for a possible downgrade.

"We still don’t see any clear signs of recovery in tourism," said Mr Burin, citing a 7% contraction in flights from China to Thailand year to date.

Domestic consumption has remained sluggish, partly due to low consumer confidence and a continued contraction of bank loans.

The outlook for exports has turned bearish for the second half after shipments soared in the first six months.