By Thanadech Staporncharnchai and Kitiphong Thaichareon
BANGKOK (Reuters) – A Thai industry body said it wanted more government support to counter global trade risks even as data on Wednesday showed industrial sentiment at a 10-month high, and the prime minister repeated calls for the central bank to cut interest rates.The Federation of Thai Industries said its industrial sentiment index rose to a 10-month high of 91.6 in January from 90.1 in December, bolstered by government stimulus, exports and tourism.
But it said uncertainty over U.S. President Donald Trump’s trade policies has subsequently affected business confidence, adding to the challenges industry faces from an influx of Chinese products and stubbornly high household debt.
“The government has to move a bit faster in implementing safeguards,” said FTI vice chairman Apichit Prasoprat.
Prime Minister Paetongtarn Shinawatra told a business forum that speeding up government investment would stimulate activity and job creation to reach a target of 3% growth this year, and said the central bank should cut rates to help the public.
On Tuesday, she had said the government would push for 3.5% growth this year and would seek to work more closely with the central bank.Southeast Asia’s second-largest economy grew 2.5% in 2024, lagging regional peers.
The Bank of Thailand will review policy settings on February 26. At its last meeting in December, it held interest rates steady after a surprise cut in October.
The BOT Governor told Reuters last month the policy rate remained suitable given high household debt, even though growth could miss the government target.Separately, Danucha Pichayanan, head of the National Economic and Social Development Council, said good preparations were the key to shielding the economy from the fallout of Trump’s trade policies.
The government is concerned that Thailand’s trade surplus with the United States could make it a target for tariffs.
“If we can prepare well for trade volatility, I believe the Thai economy will grow more than expected,” Danucha said.
On Monday, the NESDC said it was maintaining its forecast range for economic growth of 2.3% to 3.3% this year.
(Reporting by Thanadech Staporncharnchai and Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by John Mair)
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