Connect with us

Banking

Bank of Thailand lowers GDP forecast to 3.7%

An earlier forecast of Thailand’s gross domestic product GDP growth at 4.2 per cent this year was lowered for the fourth time to 3.7 per cent, according to the Bank of Thailand BoT.

Published

on

An earlier forecast of Thailand’s gross domestic product GDP growth at 4.2 per cent this year was lowered for the fourth time to 3.7 per cent, according to the Bank of Thailand BoT.

Paiboon Kittisrikangwan, BoT assistant governor for money policy, said the Monetary Policy Committee MPC reduced the the GDP growth projection in light of stagnant private consumption, less active stimulus from the public sector and inactive expansion of Thai exports.

Advanced technology was minimally used in manufacturing of Thai products and emphasis was given to production of hard-disk drives though production recently switched to smart phones and tablets, he said. Production of smart phones and tablets has yet to fully cash in on the economic revival among Thailand’s trading partners, he said, adding that export value increased by only 1 per cent from an earlier estimate of 4 per cent.

Mr Paiboon said the Thai economy should grow at a more satisfactory percentage of 4.8 – slightly lower than the original projection of 5 per cent – while exports should expand at 7 per cent. He foresaw a higher trend of domestic consumption, from 2.6 per cent this year to 2.9 per cent next year, and spending for durable products would be back to normal in the second half of next year.

The country’s revenue and confidence would improve in accord with the global economy and exports, said the assistant governor who, however, expressed concern on lower-than-expected disbursement of national budget funds and investment capital. Investment spending for infrastructure projects would be delayed by a quarter and it is estimated that only half the state budget would be spent in 2014-2015, he said. Mr Paiboon said public spending under the Water Management Act would also make little progress, and disbursement would only cover urgent projects where as public referendum would be required for the government’s expenditure on long-term schemes.

via Thai central bank lowers GDP forecast to 3.7%

Click to comment

Leave a Reply

Banking

Thailand Raises Public Debt Ceiling from 60% to 70% of GDP

Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60% to 70%

Published

on

logomain

Thailand’s State Monetary and Fiscal Policy Committee has decided to raise the ceiling of the public debt-to-GDP ratio from 60% to 70%, which will allow further public sector borrowing to rehabilitate the economy battered by COVID-19.

(more…)
Continue Reading

Banking

Malaysia, Thailand banks to join the ASEAN Banking Integration Framework

Banking institutions from Thailand and Malaysia are invited to join the ASEAN Banking Integration Framework and indicate their interest to become a Qualified ASEAN Bank (QAB) in Malaysia and Thailand.

Published

on

Pursuant to the bilateral arrangement under the ASEAN Banking Integration Framework (ABIF) between Bank Negara Malaysia (BNM) and the Bank of Thailand (BOT) which was concluded in April 2019, banking institutions from Thailand and Malaysia are invited to indicate their interest to be a Qualified ASEAN Bank (QAB) in Malaysia and Thailand.

(more…)
Continue Reading