SCB EIC cuts growth outlook to 1.4-1.5%

SCB EIC, the research centre of Siam Commercial Bank (SCB), has down-graded Thailand's economic growth forecast this year to 1.4-1.5% from 2.4% after US President Donald Trump's tariff hike on Thai imports.

- NAREEARAT WIRIYAPONG

Thitima Chucherd, head of macro-economic research, said SCB EIC also reduced its global GDP growth outlook to 2.2% from a 2.4% estimate issued in March, with US growth cut to 1.3% from 1.9%.

The new reciprocal tariff on Thai products shipped to the US is 36%, effective as of yesterday.

The global average for new wide-spread US tariffs is 16%, and the average for Southeast Asia is 33%, according to Ms Thitima.

To mitigate the adverse impact of the tariff, SCB EIC anticipates the Bank of Thailand will cut the policy interest rate three more times this year, reducing it to 1.25% by year-end.

"Many other countries face lower US tariffs than Thailand," she said.