Thailand's economic growth slows in June.

Thailand's economic growth slowed in June, according to recent data. The country's GDP growth rate declined to 3.5% in June, down from 4.1% in May. This slowdown is attributed to a decrease in domestic demand and a decline in exports. Despite this, Thailand's economy remains resilient, with a steady increase in tourist arrivals and a strong performance in the manufacturing sector.

Thailand's economic growth slowed in June, according to recent data. The country's GDP growth rate declined to 3.5% in June, down from 4.1% in May. This slowdown is attributed to a decrease in domestic demand and a decline in exports [1]. Despite this, Thailand's economy remains resilient, with a steady increase in tourist arrivals and a strong performance in the manufacturing sector.

The Thai government is actively engaged in trade negotiations with the United States, aiming to secure a favorable tariff rate before the August 1 deadline. Thailand has submitted its final tariff proposal and is now in the final stages of refining the details. The expected tariff rate is around 19-20%, aligning with the rates of other ASEAN countries such as Vietnam (20%), Indonesia (19%), and the Philippines (19%) [1].

Commerce Minister Jatuporn Buruspat confirmed that the negotiations would continue, despite Cambodia violating the ceasefire agreement. He emphasized that the talks were focused solely on trade and not on borders or sovereignty. The Thai government remains committed to prioritizing the welfare of its people and farmers [1].

The Federation of Thai Industries (FTI) anticipates a tariff rate of 19-20%, which would be a positive sign for Thailand's exports. The private sector is closely monitoring the outcome of the negotiations, as a favorable result could significantly benefit Thailand's exports, while an unfavorable outcome could lead to substantial losses [1].

Thailand's economy is significantly dependent on exports, with the export-to-GDP ratio increasing to 60-70% following the 1997 Asian financial crisis. The Thai baht has appreciated compared to its competitors, and the country's economic growth remains low. The National Economic and Social Development Council (NESDC) predicts tough US tariff negotiations and is uncertain about whether the August 1 deadline will be met [1].

The Fiscal Policy Office (FPO) has revised Thailand's 2025 GDP growth forecast to 2.2%, up from the previous estimate of 2.1%. The Ministry of Finance is preparing measures to mitigate the impact on the export sector, including a 157 billion baht economic stimulus plan and financial support for SMEs in the export supply chain [1].

References:
[1] https://www.nationthailand.com/business/economy/40053362