Mr. Kriangkrai Theeranukul, President of the Federation of Thai Industries (FTI) <\/span><\/strong>and Chairman of the Joint Private Sector Committee of 3 Institutions (JPS) stated that the JPS meeting forecasts GDP growth for 2023 to be in the range of 3-3.5%, with exports expected to decline by 1-0%. General inflation is projected to be at 2.7-3.2%. The overall economic outlook for China and the United States in the first quarter of 2023 is gradually recovering, particularly in the services sector. The signs of improvement in manufacturing in major markets are positively affecting Thai exports. Recently, signs of recovery have been observed, especially in agricultural and agro-industrial products. Therefore, it is expected that Thai exports will contract in the first half of the year (January-June 2023) before returning to growth in the second half of the year.<\/span><\/p>

Meanwhile, <\/span>the overall Thai economy shows signs of recovery from tourism, with the number of tourists potentially reaching 30 million, exceeding previous estimates. It is anticipated that tourist numbers in the second half of the year will increase, supporting GDP growth beyond that of the first half.<\/span><\/p>

However, pressures from high cost levels are expected to decrease more slowly than anticipated, as global commodity prices in agriculture and industry remain high, keeping inflation rates in major economies elevated and cost transmission ongoing.<\/span><\/p>

In Thailand, business operators are likely to gradually raise product prices by another 5-10% due to increased electricity costs, which will directly impact product prices and ongoing high costs, putting pressure on businesses and household purchasing power.<\/span><\/strong><\/p>

Additionally, the risk of drought may impact the eastern region, where rainfall is expected to decrease this year, leading to insufficient water storage in reservoirs to meet the demands of all sectors, including industry and agriculture. This will likely result in reduced yields and increased prices this year.<\/span><\/p>

The Joint Private Sector Committee (JPS) is preparing to present this issue to the Prime Minister, expected within the next week, requesting consideration for urgent three-year and long-term plans to address drought situations and implement measures to cope with drought.<\/span><\/p>

Furthermore, <\/span>six important issues have been proposed for the private business sector to political parties, reflecting the needs and directions for driving Thai businesses forward in the future, emphasizing the importance of:<\/strong><\/span> <\/p>

1. Competitiveness - Enhance the country's competitiveness to support the recovery of the Thai economy for sustainable growth by urgently addressing high electricity costs, improving infrastructure, and distributing prosperity to regions, such as water management, transportation, services, logistics, and digital infrastructure.<\/span><\/p>

2. Ease of Doing Business - Reform outdated laws to enhance the country's competitiveness by expediting the improvement of subordinate laws related to government approvals that hinder business operations, while supporting negotiations with trading partners to connect financial and trade systems in the region, especially the National Digital Trade Platform (NDTP).<\/span><\/p>

3. Digital Transformation - Promote Thailand as a technology hub to attract global investment and foster a cashless society and digital economy based on the PromptPay payment infrastructure, effectively utilizing technology and common utility payment infrastructure.<\/span><\/p>

4. Human Development - Adjust wage rates or minimum wages according to the country's economic and social conditions, while addressing the shortage of Thai and foreign labor by developing long-term strategies and plans for importing foreign labor.<\/span><\/p>

5. SMEs - Facilitate access to funding sources for SMEs, providing measures to help them access funding quickly and conveniently, restructuring debts in line with business income and economic conditions to alleviate hardships and enable SMEs to continue operations, based on the promotion of ongoing financial discipline.<\/span><\/p>

6. Sustainability - Drive the economic model towards sustainable development or BCG, promoting comprehensive recycling policies involving producers, consumers, recyclers, and holistic management. Promote Thailand's Circular Economy standards and urgently address household debt sustainably, enhancing measures before, during, and after incurring debt, emphasizing credit discipline and financial literacy, while ensuring the establishment of a comprehensive credit information center.<\/span><\/p>