Thai Economy Shrinks in Q4, Sparking Calls for Rate Cut Despite Central Bank-PM Clashes

• Thai economy contracted 0.6% in Q4 2023, adding pressure for rate cut amid feud between central bank and PM • Contraction was a surprise and dragged down by fall in investment and stagnant consumption • Risks from China slowdown and recession pressures may force central bank to cut rates despite high household debt • But central bank has signaled reluctance to cut rates yet, wanting more fiscal clarity and to align with Fed • 2023 growth slowed to 1.9% and 2024 forecast cut to 2.2-3.2%, with downgrades to exports and inflation too