Thailand’s growth beginning to falter

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Tuk tuk brokenEconomic growth in Thailand slowed for a second quarter as exports cooled and local demand weakened, the National Economic and Social Development Board said in Bangkok on August 19.

Data show that GDP increased 2.8 per cent from April to June from a year earlier, after expanding a revised 5.4 per cent in the previous quarter.

The Bank of Thailand is expected to hold the policy interest rate at 2.5 per cent at its Aug 21 meeting, as rising household debt at 80 per cent of GDP is restricting the scope for monetary easing.

The Thai baht has slipped almost 5 per cent against the US dollar and the euro in the past three months, after reaching its highest level since 1997 in April. The benchmark Stock Exchange of Thailand Index has lost more than 10 per cent over the last three months, among the worst performers in Asia.

The central bank cut its 2013 GDP growth forecast to 4.2 per cent from 5.1 per cent on July 19, citing weaker-than-expected exports. The Commerce Ministry said last month it is “very difficult” to meet its growth target of as much as 8 per cent because of slowing expansions of the country’s trading partners.

Thai consumer confidence fell to the lowest in seven months in July 2013 on rising political unrest and the weakening economic outlook.

At the same time, the government budget is burdened by high expenses for rice and rubber subsidies and also with upcoming multi-billion dollar investments into infrastructure.

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Reading Time: 1 minute

Economic growth in Thailand slowed for a second quarter as exports cooled and local demand weakened, the National Economic and Social Development Board said in Bangkok on August 19.

Reading Time: 1 minute

Tuk tuk brokenEconomic growth in Thailand slowed for a second quarter as exports cooled and local demand weakened, the National Economic and Social Development Board said in Bangkok on August 19.

Data show that GDP increased 2.8 per cent from April to June from a year earlier, after expanding a revised 5.4 per cent in the previous quarter.

The Bank of Thailand is expected to hold the policy interest rate at 2.5 per cent at its Aug 21 meeting, as rising household debt at 80 per cent of GDP is restricting the scope for monetary easing.

The Thai baht has slipped almost 5 per cent against the US dollar and the euro in the past three months, after reaching its highest level since 1997 in April. The benchmark Stock Exchange of Thailand Index has lost more than 10 per cent over the last three months, among the worst performers in Asia.

The central bank cut its 2013 GDP growth forecast to 4.2 per cent from 5.1 per cent on July 19, citing weaker-than-expected exports. The Commerce Ministry said last month it is “very difficult” to meet its growth target of as much as 8 per cent because of slowing expansions of the country’s trading partners.

Thai consumer confidence fell to the lowest in seven months in July 2013 on rising political unrest and the weakening economic outlook.

At the same time, the government budget is burdened by high expenses for rice and rubber subsidies and also with upcoming multi-billion dollar investments into infrastructure.

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