“Ongoing political uncertainty, exports slump, rising household debt and a lack of reform momentum are now increasingly seen as likely to undermine Thailand’s economic growth.
Thailand’s sluggish economic recovery and the depression in the global economy have prompted the Bank of Thailand to cut its GDP growth forecast for the full year to slightly below 3%
“In the second quarter of 2015, the Thai economy recovered at a pace close to the previous meeting’s assessment. Nevertheless, going forward, the economic outlook was subject to more negative factors, leading to a slight downward revision of the growth projection for 2015 from the previous meeting.” said the BOT
The National Economic and Social Development Board (NESDB) also stated that the Thai economy slowed to 2.8% growth in the second quarter, down from 3% in the first quarter, while Credit Suisse expects full-year GDP growth of 2.5% for the country.
NESDB also predicts exports will contract 3.5 percent from an earlier estimate of a 0.2 percent gain and government spending will rise 11.6 percent in the second half.
“The yuan devaluation is not good news for Thailand, as it will put more pressure on our exports,” Pimonwan Mahujchariyawong, a Bangkok-based economist at Kasikorn Research Co., said to Bloomberg News Agency.”
Geo Strategy Partners Managing Director Mark Towery is the Honorary Trade Advisor to the Minister of Commerce for the Republic of Thailand