Thailand's economy is in danger of collapse driven by declining exports and an uncompetitive manufacturing sector.
70% of Thailand's GDP is derived from exports, which have declined due to the industrial sector not being able to meet market demand.
This was voiced by Thailand's finance ministry, Pichai Chunhavajira, who said Thailand's inability to compete and adapt to the current situation quickly.
Year-on-year growth in the April-June quarter has seen an increase of 2.3% but quarter-on-quarter growth has decreased by 0.8%.
Thailand's economy grew 1.9% last year, lagging behind its regional peers.
Although the finance ministry forecasts moderate growth of 2.7% for 2024, the projection remains uncertain.
The central bank has kept the key interest rate at 2.50% for five consecutive meetings, to counter these challenging economic conditions.
Thailand's economic challenges underscore the need for structural reforms to improve competitiveness and sustainability, as reliance on exports alone may no longer be sufficient in an increasingly competitive global market.
