The Fiscal Policy Office has made adjustments to the country’s economic growth projections for 2015 down to just 3.9% while forecasting export growth at only 1.4%.

Kritsada Jinavijarana, the director-general of the Fiscal Policy Office, stated that they have made several adjustments with regard to the country’s economic outlook for the year.

Gross domestic product (GDP) growth has been reduced from the previous 4.1% projection to 3.9%.

The adjustment represents a growth that is well below the country’s economic potential for the second consecutive year running.

But he said in any event, this is still better that the figures for 2014 which only grew by a meager 0.7%.

He stated that the reason for the increase for 2015 will be due entirely to the proposed massive government spending in infrastructure projects and the ever improving tourism sector.

Exports however, are expected to grow by only 1.4% and this is due to the uncertain global economic outlook and the worldwide decline in agricultural prices.

On the increased volatility of the Thai baht as a result of the European Union  and Japan implementing quantitative easing (QE) monetary policies, he stated that he was confident that the Bank of Thailand will be able to manage the situation.

He predicts that the baht will fall to 33.06 baht per USD.

Meanwhile the Office of Industrial Economics released statistics showing that the country’s manufacturing production index (MPI) as of December 2014 fell by 0.35%.

This is offset however, by MPI projections for this year which is expected to grow between 3 – 4% driven by the rebound of the domestic automotive industry.

Automobile production is expected to increase by 14% while the value of industrial products (GDP Industries) is also projected to grow between 2 – 3% driven by increased domestic spending as a result of Thailand’s economic expansion helps drive these improvements.

via Growth this year adjusted down to 3.9% – Thai PBS English News.

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Asia’s Economies Face Weakening Growth amid Rising Inflation Pressures

Economic growth in Asia and the Pacific is projected to decelerate to 4.2 percent this year, 0.7 percentage points less than forecasted in April and slower than the 6.5 percent growth in 2021.

Thailand’s GDP rebounds in Q4 but recovery still lagging its peers

Oxford Economic expects economic momentum to improve further in 2022, with GDP rising by an above-consensus 5.1%. However, Oxford Economics expects the policy rate to remain at 0.5% until Q1 2023 as Thailand’s stunted recovery and a partial recovery in tourism still warrants an accommodative stance.

Japan agrees defence deal with Thailand

As the leader of Asia’s sole member of the Group of Seven (G7), Kishida discussed Russia’s invasion of Ukraine during his trip to Southeast Asia, where only one nation – Singapore – has joined sanctions against Moscow