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CNA
09-07-2025
- Business
- CNA
Thai central bank sees economy slowing in second half as tariffs hit exports
BANGKOK :Thailand's economy is expected to slow in the second half of the year and faces heightened uncertainty, the central bank said on Wednesday, as consumer confidence hit the lowest level in more than two years. Thai exports, a key driver of the economy, were expected to contract 4 per cent on a yearly basis in the second half of the year as a result of the tariffs imposed by the United States, the Bank of Thailand said. The United States was Thailand's largest export market last year, accounting for 18.3 per cent of total shipments and reaching a value of $55 billion. Washington says its trade deficit with Thailand hit $45.6 billion in 2024. Southeast Asia's second-largest economy faces tariffs of 36 per cent from Washington if a deal cannot be reached before August 1. Uncertainty around tariffs and government stability pushed consumer confidence to its lowest in 28 months, falling for a fifth consecutive month, a university survey showed on Wednesday. The economy is growing below its potential, and is forecast to expand 2.3 per cent this year and 1.7 per cent in 2026, deputy central bank governor Piti Disyatat said, adding those forecasts had already factored in the headwinds. In the first five months of 2025, exports rose 14.9 per cent from a year earlier, commerce ministry data showed, as companies rushed to deliver their products before a 90-day tariff pause came to an end. That pause has now been extended to August. The central bank forecast exports to rise 4 per cent this year but drop 2 per cent next year. A shippers' group on Wednesday cut its export growth forecast from a range of 0 per cent to 1 per cent from 1 per cent to 3 per cent seen earlier. Thai economic growth and financial conditions were held back by several factors and monetary policy alone had limited efficacy when addressing those issues, minutes from the Bank of Thailand's June 25 monetary policy meeting showed on Wednesday. At the meeting, the BOT's monetary policy committee voted 6 to 1 to keep the one-day repurchase rate unchanged at 1.75 per cent, after back-to-back cuts in February and April. "Targeted measures in conjunction with business adaptation were deemed necessary," it said. At the review, the stronger-than-expected start to the year saw the BOT lift its central-case economic growth forecast to 2.3 per cent for 2025, almost matching last year's 2.5 per cent and more optimistic than some market analysts. The next rate review is on August 13.
CNA
09-07-2025
- Business
- CNA
Thai economy to slow in second half of 2025, central bank says
BANGKOK :Thailand's economy is expected to slow in the second half of the year and faces heightened uncertainty, the central bank said at a briefing on Wednesday. Thai exports, a key driver of the economy, were expected to contract 4 per cent on a yearly basis in the second half of the year as a result of the tariffs imposed by the United States, the Bank of Thailand said. The United States was Thailand's largest export market last year, accounting for 18.3 per cent of total shipments and reaching a value of $55 billion. Washington says its trade deficit with Thailand hit $45.6 billion in 2024. Southeast Asia's second-largest economy faces tariffs of 36 per cent from Washington if a deal cannot be reached before August 1. The economy is growing below its potential, and is forecast to expand 2.3 per cent this year and 1.7 per cent in 2026, Deputy Governor Piti Disyatat said, adding that those forecasts had already factored in the headwinds. In the first five months of 2025, exports rose 14.9 per cent from a year earlier, commerce ministry data showed, as companies rushed to deliver their products before a 90-day tariff pause came to an end. That pause has now been extended to August. The central bank forecast exports to rise 4 per cent this year but drop 2 per cent next year. Thai economic growth and financial conditions were held back by several factors and monetary policy alone had limited efficacy when addressing those issues, minutes from the Bank of Thailand's June 25 monetary policy meeting showed on Wednesday. At the meeting, the BOT's monetary policy committee voted 6 to 1 to keep the one-day repurchase rate unchanged at 1.75 per cent, after back-to-back cuts in February and April. "Targeted measures in conjunction with business adaptation were deemed necessary," it said. At the review, the stronger-than-expected start to the year saw the BOT lift its central-case economic growth forecast to 2.3 per cent for 2025, almost matching last year's 2.5 per cent and more optimistic than some market analysts. The next rate review is on August 13.
Forbes
02-07-2025
- Business
- Forbes
Thailand's 50 Richest 2025: Collective Wealth Led By The Red Bull Family Jumps 11% To Cross $170 Billion
No. 1 Charlerm Yoovidhya. clive rose/Getty images This story is part of Forbes' coverage of Thailand's Richest 2025. See the full list here . Thailand's economy is growing at a slower-than-expected pace amid trade tensions and mounting political uncertainty. While a stronger baht mostly offset the 14% decline of the stock market index from a year ago, a huge boost in the fortunes of the top three propelled a more than 11% rise in combined wealth to $170.5 billion. Overall, the net worths of nearly half the listees were up with the biggest dollar jump—$8.5 billion—recorded by the Red Bull family, led by Chalerm Yoovidhya. In the No. 1 position for the second year in a row, their wealth skyrocketed to a record $44.5 billion as annual revenue of the energy drinks giant rose to €11.2 billion ($12.9 billion) in 2024 on worldwide sales of nearly 13 billion cans. The Chearavanont brothers of the Charoen Pokphand group retained their position as the country's second-richest with their net worth up by 23% to $35.7 billion. The group is doubling down on digital infrastructure, investing $1 billion with BlackRock to build data centers. Its fintech unit Ascend Money recently got approval to set up a virtual bank. Energy-and-telecoms tycoon Sarath Ratanavadi climbed two spots to land at No. 3 for the first time with $12 billion. Completing the merger between his Gulf Energy Development and Intouch Holdings and listing the combined entity in April as Gulf Development powered his ascent. Beverage tycoon Charoen Sirivadhanabhakdi's net worth was relatively flat at $10.5 billion and he slipped to fourth place. In a key move, the patriarch transferred some holdings to his five children in May but being the group founder, the fortune continues to be listed under his name. Amid weak consumer sentiment in the retail sector, the Chirathivat family's wealth was down 13% to $8.6 billion. Last October, the group got a new partner: Saudi Arabia's Public Investment Fund acquired a 40% stake in British retailer Selfridges from Austria's Signa Holdings. (Central group retains 60%.) A total of 19 listees faced a downdraft. Coffee magnate Prayudh Mahagitsiri's wealth took a hit as his PM Group's long-standing joint venture with Nestle ended. Two patriarchs died since the last ranking: Vanich Chaiyawan, chairman emeritus of insurance giant Thai Life; and Pongsak Viddayakorn, cofounder of hospital chain Bangkok Dusit Medical Services, who went on to build a separate healthcare business under Principal Capital. Their fortunes are now listed under the Chaiyawan family and the Viddayakorn family. Though the minimum net worth to qualify for the list dropped to $420 million from last year's $550 million, four people fell from the ranks. A notable absentee is renewable energy magnate Somphote Ahunai, whose Energy Absolute faced financial stress. Full Coverage of Thailand's Richest 2025: Reporting by Gloria Haraito and Anuradha Raghunathan. Methodology: This list was compiled using shareholding and financial information obtained from the families and individuals, stock exchanges and analysts, the Stock Exchange of Thailand and regulatory agencies. Unlike our billionaire rankings, this list encompasses family fortunes, including those shared among extended families of multiple generations. Public fortunes were calculated based on stock prices and exchange rates as on June 13. Private companies were valued based on comparisons with similar companies that are publicly traded. The list can also include foreign citizens with business, residential or other ties to the country, or citizens who don't reside in the country but have significant business or other ties to the country. The editors reserve the right to amend any information or remove any listees in light of new information.
Reuters
02-07-2025
- Business
- Reuters
Thai monetary policy must stay flexible as headwinds build, central bank deputy says
BANGKOK, July 2 (Reuters) - Thailand's economy faces a challenging second half of 2025 due to uncertainty about threatened U.S. tariffs, a central bank deputy governor said on Wednesday, just as the country is caught in a new wave of domestic political turmoil. Under these circumstances, Roong Mallikamas, one of the two candidates short-listed to lead the Bank of Thailand from October, said that the central bank's monetary policy should remain at an accommodative level to support the economy. "We'll see a tailing of the economic growth in the second half of this year mainly due to the tariff effects," Roong told Reuters in an interview. "We do anticipate a marked slowdown in economic activities". "I think basically the tariff effects also magnify... our country's structural problems." Southeast Asia's second largest economy has lagged regional peers since the pandemic, growing only 2.5% last year and forecast to expand by 2.3% in 2025, bogged down by high levels of household debt and tepid consumption. After rate cuts in October, February and April, the Bank of Thailand last week left its key interest rate unchanged. "I think the pause was just to say that this is to assess what we have already taken," she said. "Another issue is how to maximise the remaining policy space that we have." "If the outlook deteriorates, if I were an MPC member, I would not be reluctant to ease," Roong said. The BOT will next review policy on August 13. Thailand faces renewed political chaos after Prime Minister Paetongtarn Shinawatra was suspended from office by the Constitutional Court on Tuesday. The political uncertainty is currently not an elevated concern, with government spending and trade negotiations with the U.S. likely to continue without interruption, Roong said.
Reuters
30-06-2025
- Business
- Reuters
Thai economy slows in May on weaker tourism, production, central bank says
BANGKOK, June 30 (Reuters) - Thailand's economy in May softened from the previous month following a slowdown in the tourism sector and a decline in manufacturing production, which offset the surge in exports, the central bank said on Monday. The tourism sector in May saw a decline in both revenue and the number of foreign tourists, particularly long-haul travellers, the Bank of Thailand said in a statement, opens new tab. Manufacturing production declined in May from April, attributed to a prior inventory replenishment and the temporary closure of an oil refinery for maintenance, it said. Exports, a key driver of the economy, rose sharply, led by electronics exports and driven by increasing global demand as well as an acceleration of shipments during the tariff grace period, it said. Thailand posted a current account (THCURA=ECI), opens new tab deficit of $0.3 billion in May, the BOT said. Private investment in May dropped 0.6% from the previous month but private consumption rose 0.2%, supported by a continued surge in consumption of durables, it said.
