Agriculture accounts for more than 65% of Thailand’s water consumption, leaving the sector highly vulnerable to low rainfall.
Amid improving market sentiment and a weakening dollar, the World Bank is raising its 2016 forecast for crude oil prices to $41 per barrel from $37 per barrel in its latest Commodity Markets Outlook, as an oversupply in markets is expected to recede.
Industrial confidence index in Thailand for the month of March rebounded to 86.7 points compared to February’s index of 85.1.
Slower economic recovery and shrinking exports are the main reasons quoted by the BoT for the lower adjustment, as well as the impact of the drought that could be more severe than expected.
The recovery is expected to strengthen moderately, with real GDP growth projected at 3 percent in 2016 and 3.2 percent in 2017. A slight improvement in confidence and low energy prices foreshadow a pickup in private consumption.
Thailand Development Research Institute (TDRI) forecast the country's economic growth this year at 2.8%.
January’s exports only amounted to US$ 15.7 billion which means that the country’s exports have suffered a sustained 13 month contraction.
Industrial confidence index for the month of January dropped for the first time in five months to 86.3 points from last December’s 87.5 points