Connect with us

Economics

Kasikorn Bank lowers 2019 GDP growth forecast to 3.1%

Kasikorn Research Center (KResearch) has adjusted its expected GDP growth figure this year, lowering it from 3.7 to 3.1 percent, following Bank of Thailand lowering estimates from 3.8% to 3.3%

Published

on

Kasikorn Research Center (KResearch) has adjusted its expected GDP growth figure this year, lowering it from 3.7 to 3.1 percent as a result of no growth in the export sector due to the ongoing trade war, which is expected to have a bigger effect next year.

KResearch Assistant Managing Director Nattaporn Triratanasirikul revealed today that the prolonged trade war has affected the export sector by 0.6 percent, worth 31 billion US dollars, while the continuous appreciation of the Thai currency will mean the export sector achieves zero growth this year, from the previous target figure of 3.2 percent.

This situation will also decelerate Thai economic growth this year, bringing GDP growth down from 3.7 percent to 3.1 percent.

The Bank of Thailand (BOT) announced yesterday that the Thai economy is likely to expand at a slower pace
The Bank of Thailand (BOT) announced earlier last week that the Thai economy is likely to expand at a slower pace  of 3.3 percent from 4.1 percent in 2018

The Thai economy in 2020 is expected to be hit even harder by the effects of the trade war

Despite the lower GDP, the Thai economy in the latter half of this year is expected to perform better than in the first half as a result of the new government’s economic stimulation measures, as the coalition is expected to bring forward policies promised in the election campaign such as Pracharat campaigns, a farm product pricing guarantee, and urgent measures to mitigate the effects of a decelerating global economy.

It is thought the U.S. Federal Reserve Bank may reduce its policy rate once or even twice this year, given signs of a weakened U.S. economy, while overall commercial bank loans will grow by 4.5 percent, lower than previous expectations of 5 percent due to slower performance of business sector loans and residential loans affected by advanced purchases earlier.

The volume of non-performing loans (NPL) might increase, especially restructured debts, but the overall level is expected to remain between 2.98 and 3 percent.

National News Bureau Of Thailand

Click to comment

Leave a Reply

Economics

Thailand relaxes COVID-19 measures to help revive economy

During the past couple weeks, new infection cases have been down from roughly 20,000 daily cases to 17,000 -19,000. Moreover, the number of daily discharges is exceeding infections, which has led to the conclusion that the situation is improving.

Published

on

Thailand relaxed more virus related social curbs on September 1st, in dozens of cities including Bangkok, in a move that may indicate that the country’s economy, hit hard by COVID-19 will soon revive, lead by the export sector and sound financial fundamentals.

(more…)
Continue Reading

Economics

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.

Published

on

The Delta surge is casting larger clouds over the global recovery and emerging markets are in the thick of it. Despite the ebbing of the coronavirus variant in India, where it first emerged, its spread in Southeast Asia, Africa, and the Middle East has steepened the road to recovery in these regions.

(more…)
Continue Reading