Connect with us

Economics

World Bank downgrades Thai growth to 3.5%

This is the first time since the 1997-1998 Asian financial crisis that growth in the region has dropped below 6% according to the World Bank’s latest “Global Economic Prospects” report.

Olivier Languepin

Published

on

Thailand’s 2019 GDP growth outlook is seen down to 3.5% from the 3.8% forecast in January, according to the World Bank’s latest “Global Economic Prospects” report.

Growth in East Asia and Pacific is slowing, largely due to a deceleration in China, and is projected to ease to 5.9% in 2019.

This is the first time since the 1997-1998 Asian financial crisis that growth in the region has dropped below 6%.

Domestic demand will continue to benefit from favorable financing conditions amid low inflation and rising capital flows in Cambodia, the Philippines, Thailand, and Vietnam.

Last October, the World Bank predicted that Southeast Asia’s second-largest economy would expand by 3.9% in 2019.

Bank of Thailand officials said recently that GDP would likely expand by less than the 3.8% forecast for this year.

Regional growth excluding China is forecast to decline to 5.1% in 2019 before inching up to 5.2 percent in 2020-21 as global trade rebounds.

Thailand and the Philippines will profit from large public infrastructure projects coming onstream in 2020-21. Growth in Indonesia is expected to accelerate marginally to 5.3% in 2020, reflecting continued support from strong infrastructure spending and robust private consumption.

In Malaysia, growth is expected to remain steady at 4.6% next year with weakening export activity offset by strong domestic demand in an environment of favorable financing conditions and low inflation.

Risks: escalation of trade tensions and non-financial sector debt in China

Risks to the outlook are tilted to the downside and have intensified amid re-escalation of trade tensions. They include the possibility of a sharper-than-expected downturn in major economies, including China, a further deceleration of global trade, intensification of trade disputes, or an abrupt change in global financing conditions and investor sentiment.

Non-financial sector debt in China is at high levels and high corporate indebtedness in sectors with weak profitability is a concern. Policy uncertainty around unresolved trade disputes between the United States and China remains high, and further escalation of trade tensions could have global and regional consequences.

The region could further be negatively impacted by a disorderly U.K. separation from the European Union as the United Kingdom is an important trading partner for several regional economies, especially Cambodia and Malaysia.

Continue Reading
Advertisement Load WordPress Sites in as fast as 37ms!
Comments

Economics

IMF and SCB lower Thai growth forecast under 3%

IMF and SCB have joined other banks and organisations to predict Thai economic growth under 3% for 2019.

Olivier Languepin

Published

on

Siam Commercial Bank’s (SCB) Economics Intelligence Center (EIC) has adjusted its Thailand 2019 economic growth projection from 3 percent down to 2.8 percent.

(more…)

Continue Reading

Economics

Thailand drops to 40th in WEF Global Competitiveness Report

Thailand’s competitiveness ranking has dropped two spots from 38th to 40th in the World Economic Forum’s Global Competitiveness Index rankings for 2019

Olivier Languepin

Published

on

Thailand is the 40 most competitive nation in the world out of 140 countries ranked in the 2018 edition of the Global Competitiveness Report published by the World Economic Forum.

(more…)

Continue Reading

Economics

Thai private sector cuts economic growth forecast to 2.7-3% from 2.9-3.3%

The Joint Standing Committee on Commerce, Industry and Banking has revised downward its forecast of Thailand’s economic growth this year to between 2.7 per cent and 3.0 per cent

Boris Sullivan

Published

on

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) agreed today to lower down the economic growth projection (GDP) to 2.7-3% from 2.9-3.3% due to weakening economic growth during the first three quarters of the year.

(more…)

Continue Reading

Most Read

Upcoming Events

Mon 21

34th International Conference on Dental and Oral Health

October 21 @ 9:00 am - October 22 @ 5:00 pm BMT
Nov 06

2nd World Congress on Pediatrics and Child care

November 6 @ 8:00 am - November 7 @ 7:00 pm BMT
Radisson Hotel Narita
Tomisato-shi
Nov 07

3rd World Congress On Gynecology, Obstetrics & Reproductive Health

November 7 @ 9:00 am - November 8 @ 4:00 pm BMT

Press Release

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 11,135 other subscribers

Trending