Thai private sector lowers GDP growth forecast on fluctuated crude oil and natural gas prices

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Supant said the Russia-Ukraine conflict was severer and longer than anticipated and raised considerably crude and natural gas prices worldwide.

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) revised its prediction on the Thai economic growth downwards to 2.5-4.5% this year while proposing the government and the private sector monitor and assess local and international situations closely together.

Supant Mongkolsuthree, chairman of the Federation of Thai Industries and chair of JSCCIB’s meeting this month, said the Russia-Ukraine conflict was severer and longer than anticipated and raised considerably crude and natural gas prices worldwide.

The price of crude oil reached US$100 per barrel for the first time in eight years, increased production costs and affected global economy, he said.



There were impacts on the Thai economy in many aspects including inflation, exports and tourism. Inflation tended to run faster along with energy prices. The rate of core inflation could exceed 3% and limit the increase in local demand and purchasing power, Mr Supant said.

There were impacts on the Thai economy in many aspects including inflation, exports and tourism while inflation tended to run faster along with energy prices and the rate of core inflation could exceed 3% and limit the increase in local demand and purchasing power, Supant said.

Under the circumstance, JSCCIB revised its projection of the Thai economic growth rate from 3.0-4.5% downwards to 2.5-4.5% and set its predicted inflation rates between 2-3% up from 1.5-2.5% this year. It maintained its export growth anticipation at 3-5%, he said.

The private sector’s committee also proposed the government form a joint working group with the private sector to monitor and assess local and international situations and share facts with the private sector. The joint committee could also plan Thai exports in the event of sanctions by western countries and their allies, Mr Supant said. (TNA)

The price of crude oil reached US$100 per barrel for the first time in eight years, increased production costs and affected global economy, Supant said.