Connect with us

Economics

World Bank sets Thailand’s growth forecast to 3.5%

Thailand’s economic growth (GDP) for the whole year in 2015 will be 3.5 % compared to last year’s 0.9 percent, according to the World Bank.

Daniel Lorenzzo

Published

on

Thailand’s economic growth rate (GDP) for the whole year in 2015 will be 3.5 percent compared to last year’s 0.9 percent, according to the latest forecast of the World Bank.

Loading...

World Bank’s director for Southeast Asia Mr Urich Zakao said today that the only factors attributing to this year’s forecast of higher growth rate compared to last year’s are declining global oil prices, higher revenues from tourism industry, increased government’s spending and gradual increase of exports.

Due to lower competitiveness, the World Bank pointed out that Thai exports which grew by an average of 13 percent per annum during 2006 and 2011 started to contract since 2012. The share of Thai exports in the world’s export market also contracted accordingly.

Earlier this week The Bank of Thailand has readjusted its projection for economic growth to below 3.8% as a result of faltering exports, slow and fragile recovery of Thai economy.

Thai economic recovery remains slow and fragile

In April 2015, the Thai economic recovery continued to be slow and fragile, said the BoT in its latest Press Release on the Economic and Monetary Conditions for April 2015.

Households and businesses were cautious about spending and merchandise exports were sluggish in line with subdued regional trade caused by the slowdown in the Chinese economy.

Mr Zakao, however, said that Thailand could regain its competitiveness if the Thai labour’s skills and productivity are increased.

While access to education among Thai children and youths has increased substantially for the past 25 years when only 10 percent of them had access to secondary education compared to 70 percent today, he suggested that the quality of the Thai education should also be improved as well.

Thailand’s looming deflation risk

Thailand has reported its fifth straight month of deflation, its longest run since the global financial crisis, reported today the Financial Times.

Thai consumer prices fell 1.27 per cent year on year in May, exceeding consensus expectations and deepening the rate of decline from the 1.04 per cent figure reported a month earlier.

Earlier this month, the Office of the National Economic and Social Development Board cut its GDP growth forecast for this year to 3-4% from an earlier prediction of 3.5-4.5%.

It stated that the downward revision was mainly from the drop in export values following the falling global oil and farm prices.

It also expects Thailand to post only 0.2% growth in exports in 2015 from earlier projected 3.5%, while household consumption will expand by 2.3%.

Read more at https://www.thailand-business-news.com/economics/50786-thai-exports-shrink-for-the-fourth-consecutive-month.html#2FqmLbFlCu2R6pA7.99

Comments

Economics

EEC Expects 300-billion-baht Investment This Year

National News Bureau of Thailand

Published

on

logomain

BANGKOK (NNT) – Thailand expects investment to triple to at least 300 billion baht in the Eastern Economic Corridor (EEC) this year as investment projects previously held by the coronavirus outbreak get pushed forward again as the pandemic eases.

Loading...
(more…)

Continue Reading

Economics

Finance Ministry Seeks More Fund for Co-payment Scheme

Fiscal Policy Office (FPO) Director-General Kulaya Tantitemit said the number of registrants exceeded the target of 31 million and could tally more than 32 million.

National News Bureau of Thailand

Published

on

logomain

BANGKOK (NNT) – Thailand’s Finance Ministry is preparing to seek the Cabinet’s approval for additional funding for the Rao Chana (We Win) scheme following the better than expected number of registrants.

Loading...
(more…)

Continue Reading

Economics

New Business Registration Tops Highest since January 2019

The top three sectors for new business registrations in January were building and construction (634), real estate (299) and transport and logistics (192).

National News Bureau of Thailand

Published

on

logomain

BANGKOK (NNT) – New business registration topped 7,283 in January, the highest since January 2019, driven by the promise of Covid-19 inoculations and upbeat sentiment on the country’s economic outlook.

Loading...
(more…)

Continue Reading

Latest

Most Viewed

Subscribe via Email

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

Join 13,634 other subscribers

Trending