Thailand cuts GDP growth target for 2013
A sluggish global economy and the volatility of Thailand currency, the baht, were the reasons cited by the country’s National Economic and Social Development Board for cutting GDP growth expectations for 2013 to a range of 4.2 to 5.2 per cent from its earlier forecast of 4.5 to 5.5 per cent. Growth will likely be at the lower end of the revised range and not cross the 5 per cent level, the board said on June 27.
Slower than expected economic recovery of Thailand’ s major trading partners, as well as declining domestic consumption and private investment were also weighing on economic development. Economic growth in the first quarter of 5.3 per cent year-on-year was already lower than expected.
Another monetary body, Thailand’s Finance Ministry’s Fiscal Policy Office on June 27 also slashed its 2013 economic growth forecast to 4.5 per cent from an earlier forecast of 4.8 per cent. It also lowered its export growth target for the year to 5.5 per cent from 9 per cent.
However, drivers for the economy would be the $11 billion water management programme and the $64 billion infrastructure scheme, which are due to be endorsed by parliament in October 2013, as well as a thriving tourism sector and, basically, the country’ “strong economic fundamentals.”
However, both bodies did not mention the impact of the failed rice subsidy scheme. Also, political instability including the upcoming fourth cabinet reshuffle since the new government took office in 2011 adds to concerns.
A sluggish global economy and the volatility of Thailand currency, the baht, were the reasons cited by the country's National Economic and Social Development Board for cutting GDP growth expectations for 2013 to a range of 4.2 to 5.2 per cent from its earlier forecast of 4.5 to 5.5 per cent. Growth will likely be at the lower end of the revised range and not cross the 5 per cent level, the board said on June 27. Slower than expected economic recovery of Thailand' s major trading partners, as well as declining domestic consumption and private investment were also weighing on...
A sluggish global economy and the volatility of Thailand currency, the baht, were the reasons cited by the country’s National Economic and Social Development Board for cutting GDP growth expectations for 2013 to a range of 4.2 to 5.2 per cent from its earlier forecast of 4.5 to 5.5 per cent. Growth will likely be at the lower end of the revised range and not cross the 5 per cent level, the board said on June 27.
Slower than expected economic recovery of Thailand’ s major trading partners, as well as declining domestic consumption and private investment were also weighing on economic development. Economic growth in the first quarter of 5.3 per cent year-on-year was already lower than expected.
Another monetary body, Thailand’s Finance Ministry’s Fiscal Policy Office on June 27 also slashed its 2013 economic growth forecast to 4.5 per cent from an earlier forecast of 4.8 per cent. It also lowered its export growth target for the year to 5.5 per cent from 9 per cent.
However, drivers for the economy would be the $11 billion water management programme and the $64 billion infrastructure scheme, which are due to be endorsed by parliament in October 2013, as well as a thriving tourism sector and, basically, the country’ “strong economic fundamentals.”
However, both bodies did not mention the impact of the failed rice subsidy scheme. Also, political instability including the upcoming fourth cabinet reshuffle since the new government took office in 2011 adds to concerns.
