File photo: VCG
BANGKOK, Dec. 9 (Xinhua) -- A research unit for a Thai commercial bank on Monday said it has further revised downward its gross domestic product (GDP) forecast for 2019 to 2.5 percent from 2.8 percent while it projects the Thai economy to 2.7 percent in the year 2020.
At a seminar in Bangkok on "Business Outlook amid Numerous Challenges in 2020," Kasikorn Research Centre warned that Thai businesses may face further risks including the strengthening of the Thai baht, drought and the repercussions to the minimum wage hike.
The downward revision of the Thai economy is due to the lackluster export performance due to the global trade frictions and the strong baht, and the delay in the enactment of the budget expenditure bill for year 2020, said Nattaporn Triratanasirikul, Kasikorn Research Centre assistant managing director.
Loan growth from commercial bank next year is expected to stay unchanged at 3.5 percent; non-performing loans may increase from 2019, while the banks' fees are likely to grow no more than 1-2 percent and there may be additional impacts from the government's policies, said the Business Outlook amid Numerous Challenges in 2020 report.
It also said that the minimum wage rise may present a challenge to the business sector.
In the property sector, Kasikorn Research Centre's report said the market has not recovered yet because there are about 200,000 unsold residential units in the market for property developers yet to clear within a short period of time.
However the report indicated that the tourism market will continue to thrive, as inbound tourism markets including China, India, as well as domestic tourism will help create travel related business opportunities in Thailand.
Thailand's tourism accounts for as much as 18 percent of the Thai GDP.