The Thai economy is almost in crisis, said the acting finance minister By Reuters

BANGKOK (Reuters) – Thailand’s economy is near crisis due to falling exports and uncompetitive manufacturing, the country’s acting finance minister said on Wednesday.

Exports account for 70 percent of the economy, but the manufacturing sector cannot meet market demand, Pichai Chunhavajira told a business seminar.

“We can’t compete. We can’t adapt to the times,” he said.

Southeast Asia’s second-largest economy grew 2.3 percent in the April-June quarter from a year earlier, accelerating from 1.6 percent growth in the previous quarter.

But quarterly growth slowed to 0.8 percent in the second quarter, from 1.2 percent expansion in the previous three months.

The Ministry of Finance predicts economic growth of 2.7% for 2024, after last year’s growth of 1.9%, which lagged behind regional peers.

The central bank is expected to leave its key interest rate unchanged at a more than decade high of 2.50 percent for a fifth straight meeting later on Wednesday.