The National Economic and Social Development Board (NESDB) today lowered the country’s economic growth this year to 3% from its earlier projection of 3.8-4% growth.

It attributed the low growth to lower than target of exports and car production which was below its target, and also the government investment projects which did  not meet its schedules and targets.

Also a concern about the current political turmoil could affect the tourism industry was another factor that brought the expected growth down, it said.

GDP in the third quarter of 2013 increased by 2.7%, a slight slowdown from a 2.9% rise in the previous quarter. This was a result of deceleration in non-agricultural sector and a decline in agricultural sector. On domestic expenditure, household consumption and investment decreased by 1.2% and 6.5%, respectively. In contrast, government  consumption and net exports of goods and services grew by 7.4% and 18.6%, respectively. Also, inventories had run down in this quarter. After seasonal adjustment, GDP on the quarter-by-quarter basis increased by 1.3%. GDP in the first nine months of 2013 grew by 3.7%.

Arkhom Termpittayphaisith, secretary-general of the think tank, on Monday released the third-quarter economic indicators, which showed growth of only 2.7 per cent against market expectation of 2.9 per cent. This forced the NESDB to revise downward the annualised economic projection from a range of 3.8-4.3 per cent, to only 3 per cent.

He attributed the low quarterly figure mainly to a decline in domestic consumption and private investment.

The Thai economy expanded 2.8 per cent in the second quarter.

A sharp plunge in exports, which generate about 70 per cent of Thailand’s GDP, has been a key reason for the lower growth this year.

HSBC earlier expected Thailand’s exports to contract 2 per cent this year.

About the author


Leave a Reply

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Thai Chamber of Commerce expects GDP to grow by 1.5% in 2021

With the relaxation of Covid restriction measures and the reopening of Thailand, 200,000 to 300,000 foreign tourists were now expected to visit Thailand this year and contribute to approximately 12 billion baht of income.

Global Community Steps Up with $93 Billion Support Package for World’s Poorest Countries

 The World Bank today announced a $93 billion replenishment package of the International Development Association (IDA) to help low-income countries respond to the COVID-19 crisis and build a greener, more resilient, and inclusive future.

Southeast Asia to relinquish its lead over Latin America says Moody’s

While the emerging economies of Southeast Asia have outperformed their counterparts in Latin America for most of the past two decades, their lead will slide in the next few quarters as Southeast Asian governments clamp down to fight the pandemic’s lingering second and third waves.