1) Thai stock market overview
Thailand’s SET Index closed at 1,685.75 points, decreased 5.66 points or 0.33% with a trading value of 73 billion baht. The analyst stated that the Thai stock market was pressured by a selloff from stocks that previously made some gain, especially reopening stocks. Meanwhile, investors were focusing on the upcoming release of U.S. inflation data on Thursday. If the reading is inline with expectations, it should boost fund flow to risk assets.
2) World Bank slashes 2023 global growth forecast and warns of recession
The World Bank slashed its 2023 growth projections for most countries to levels on the verge of recession on Tuesday, as the impact of central bank rate hikes deepens, and Russia’s war in Ukraine continues.
The bank stated that global gross domestic product will grow by 1.7% this year, which would be the slowest rate outside of a recession in 1993 and 2022 and roughly half the rate predicted in June. Previously, the bank had anticipated worldwide growth of 3.0% in 2023.
The report on Tuesday highlighted a number of factors, including the effects of Russia’s invasion of Ukraine, ongoing inflation and higher interest rates as the main causes.
3) “80% of imported cases are from China,” South Korean Disease Control Agency says
80% of travelers from China were positive for Covid-19, Seung-ho Choi, a deputy director at the Korea Disease Control and Prevention Agency, told CNBC.
Choi was also concerned that the test of positive Covid-19 of China still went up 14 times from November to December. He said China could bring Korea at risk , so the temporary policies applied to all Korean and non-Korean nationals who came from China are unavoidable, while asserting that there is no discrimination.
Many countries announced new rules that required the test of negative Covid-19 before arriving; it was the same as the requirement of China for inbound travellers from other countries.
South Korea and Japan said that they will not increase flights from China although China’s borders were open. South Korea proclaimed that they will limit short-term visas to travelers from China.
4) Thailand’s joint business group keeps 2023 growth forecast at 3.0-3.5%
Thailand’s joint business group kept its growth forecast for 2023 at 3.0-3.5% on Wednesday, despite continued recovery in the tourism industry. Thailand expects to receive 20-25 million international visitors this year, primarily from China, following the reopening of its borders.
Thailand recorded 11.1 million inbound travelers in 2022, exceeding estimates.
The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) stated that, although the economic outlook has yet to be revised, it anticipates that the recovery would continue into the second quarter, mostly due to the return of Chinese tourists.
In light of the slowdown in global demand and the effects of central bank rate hikes, the business group anticipated a decline in exports.