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
Southeast Asia's second-largest economy grew 0.8 per cent in the final quarter of 2015 from July-September on a seasonally-adjusted basis, less than the 1.0 per cent in July-September and the 0.9 per cent expected in a Reuters poll, but growth improved for the year, powered by government stimulus measures and a surge in tourist spending, mainly from China.
The private sector has set export projection this year at 2%, beyond export projection of 5% set by the Commerce Ministry. Meanwhile Thai Military Bank (TMB Bank),’s research centre predicted that Thailand’s exports should grow at 1.8% this year.