The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) has kept its key economic forecasts unchanged, citing threats of external risks that could impede recovery.
Chen Namchaisiri, chairman of the Federation of Thai Industries (FTI), who chaired the JSCCIB meeting yesterday, said these factors include US economic policy and the political situation in the European Union.
The JSCCIB is maintaining its forecast of Thai economic growth at 3.5-4% in 2017. It is also keeping to its forecast of this year's export growth at 1-3% and inflation at 1-2%.
The forecasts are based on the assumption that government spending will play a major role in stimulating the economy, creating jobs and increasing purchasing power, he said.
Mr Chen said the JSCCIB will monitor the Federal Open Market Committee meeting on March 14-15 closely as economists and analysts expect a US rate rise this time.
The JSCCIB expects to see limited impact from the US trade and economic policy at this stage as no new policy has been implemented yet.
"It will take time for the US to fully implement its new fiscal and trade policies. We expect limited impact from the US policy and domino effect on its major trade partners, such as China," he said, adding the JSCCIB will continue to monitor the situation closely.
Mr Chen said China will have its own policies in reaction to the US stance in order to prevent the Chinese economy from being hurt by any potential new US trade policies and the resilience of the Chinese economy will also lend support to the Thai economy.
For the Thai economy, the JSCCIB expects the government's massive spending on infrastructure projects, improving exports and the hefty tourism industry to continue to play major roles in boosting the Thai economy.
However, rising farm products prices could backfire on the economy as they will translate into rising inflation, which could eventually limit private consumption. Household debts, which remain relatively high, are also another risk to weigh on economic growth this year, said Mr Chen.