Thailand’s tourism industry has helped the country’s economy recover, but the private sector remains worried about production costs and rising electricity prices. In addition, concerns are mounting about potential droughts that could negatively impact agriculture and industry.
The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) Chairman Kriengkrai Thiennukul has revealed that the committee is preparing a letter to be addressed to Prime Minister Gen. Prayut Chan-o-cha about the potential drought situation. The letter will request the relevant agencies to produce an urgent-phase drought mitigation plan, a 3-year plan, and a long-term plan. This comes as industry leaders express concern about potential droughts resulting from the El Nino phenomenon, which could begin in July of this year. This phenomenon could reduce the amount of water in Thailand’s Eastern Region, thereby impacting agriculture and industry.
Mr. Kriengkrai has warned that without adequate preparations, drought conditions could further heighten production costs for businesses, causing food prices to rise.
Despite these concerns, the JSCCIB chairman has expressed optimism about the country’s overall economic outlook. He has noted that the tourism sector’s performance has been encouraging, and the number of foreign tourist arrivals could exceed previous projections by reaching 30 million persons. Additionally, exports are expected to return to expansion in the latter half of the year, despite a projected contraction in the first half.
The JSCCIB maintains its 2023 GDP growth projection at the 3-3.5% range while expecting the growth of the export value to come in at minus one to zero percent. Furthermore, the committee predicts inflation to be in the range of 2.7-3.2% in 2023.