A prominent Thai business group expected the country's economy to grow at a rate of between 2.4 and 2.6 percent this year, compared to its previous forecast of 2.1 to 2.5 percent, supported by improved performance of the manufacturing sector and an increase in exports.
The Permanent Joint Committee on Trade, Industry and Banking said on Wednesday that Thai exports, which are a major driver of economic growth, are expected to rise by between 18 and 22 percent, compared to its previous estimates that indicated an increase of between 12 and 16 percent, according to Reuters.
The committee explained, in a statement, that amending the methodology for calculating the industrial production index in Thailand showed factory production growing by 2.6 percent on an annual basis, during the first nine months of 2026, instead of the contraction that the data showed according to the previous methodology.
The second largest economy in Southeast Asia recorded growth of 2.4 percent over the past year, lagging behind other economies in the region.
In a related context, the group supported raising the consumption tax imposed on imported electric cars to 35 percent, with the aim of encouraging local production.
The move is expected to contribute to increasing domestic automobile production by 7 percent, reaching 1.55 million units in 2027, Federation of Thai Industries President Pimjay Leesarankul said during a media briefing.
The group added that the automobile and spare parts industry sector in Thailand represents about 10 percent of the gross domestic product, provides more than 800,000 job opportunities, and includes more than 3,000 small and medium companies working in the field of supply.
Thailand is a major regional center for the automotive industry, attracting prominent international companies, including BYD and Toyota Motor.
India's services sector growth accelerated in October to its highest pace in 4 months, driven by improved domestic demand that boosted new business, while companies showed a slowdown in the pace of hiring as external demand weakened, according to a survey published on Wednesday.
The HSBC Purchasing Managers' Index for the services sector rose to 55.8 points in October, compared to 55.2 points in September, but it came below the initial reading of 56.2 points. Readings above 50 points indicate growth, according to Reuters.
The acceleration in activity was supported by a rise in new business, which recorded the fastest pace of growth since June, thanks to strong domestic demand.
In contrast, external demand remained weak, with growth in new export-oriented business slowing to its lowest levels in 45 months.
The weakness of external demand was reflected in the labor market. Employment growth has almost stalled, recording its slowest pace in 10 months and similar to the level recorded in June.
Regarding prices, inflationary pressures eased during the month, with prices for services provided to customers rising at the slowest pace in 4 months, while inflation in input costs slowed to the lowest level in more than 6 years, despite companies continuing to report higher costs of electricity, labor, raw materials, and transportation.
On the other hand, business confidence declined compared to September, and remained below its long-term average, reflecting continued caution about growth prospects, despite improved activity.
In an additional indication of improved private sector performance, the composite PMI, which includes the manufacturing and services sectors, rose to 56.2 points in October, compared to 55.9 points in September, recording its highest level in 4 months.
The Central Bank of India has formed a technical advisory committee to communicate with participants in the financial markets and discuss issues related to policies and operational aspects, in light of the rapid developments witnessed in the markets and financial infrastructure.
The Indian Central Bank said in a statement on Wednesday that the committee, headed by the Deputy Governor responsible for regulating financial markets, will form a platform for dialogue on the cash markets, government bonds, the foreign exchange market and related financial derivatives, in addition to market infrastructure, according to Reuters.
The committee includes 7 members from outside the central bank, including representatives of the State Bank of India, Axis Bank, ICICI Bank, Citibank of India, the Indian Clearing Corporation, and Morgan Stanley India. It also includes Ananth Narayan, a former official at the Financial Markets Regulatory Authority of India.
The committee will examine issues related to the performance of money markets, government bonds, foreign exchange, and related derivatives, their efficiency and levels of liquidity, and their ability to confront risks and turmoil.
It will also examine domestic and international developments, financial innovations, and emerging risks that may impact Indian markets, as well as issues related to trading, clearing, settlement, reporting, and other components of market infrastructure, including associated regulatory and operational frameworks.
The Reserve Bank of India announced the formation of the committee during its review of monetary policy in October, with its meetings to be held at least once every 3 months.
