Thailand’s central bank decided to again revise downward its economic growth projection for 2015 as a result of weaker-than-expected export performance and private spending.
Key developments factored into the MPC’s forecast revision include
(1) slower-than-expected global economic recovery due mainly to further weakness in China’s and other Asian economies’ growth,
(3) the impact of the mid-year drought on the overall economy, and
(4) more-than-expected decline of global oil prices.
In light of the aforementioned economic assessment, the MPC lowered the growth projection for both 2015 (2.7% down from 3%) and 2016 (3.7% down from 4.1%), and appraised the risks around the central projection to skew to the downside. The downside risks include
(1) a sharper slowdown in the Chinese and Asian economies,
(2) a greater-than-expected decline in the number of tourists in the aftermath of the bombings in Bangkok, and
(3) lower-than expected crowding-in effects of public investment amid weak private sector confidence.
The upside risks could stem from accelerated disbursements of public investment expenditure and more effective implementation of government stimulus packages, as well as a greater-than-expected growth of the tourism sector in 2016.
On August 5 and September 16, 2015, the MPC voted unanimously to maintain the policy rate at 1.50 percent per annum with the assessment that the recent conduct of monetary policy has further relaxed domestic monetary conditions conducive to economic recovery, reflecting in the decline in business sector’s funding cost in the money markets and recent developments in the exchange rate.
Thailand’s Public debt to GDP ratio within framework says Finance Minister
Currently, Thailand’s ratio of public debt to gross domestic product (GDP) stands at 49.34 percent, which is below the Fiscal Sustainability Framework set at 60 percent.
Raising inequality posing credit risks for sovereign in APAC countries
Governments with weaker social protection systems and tighter fiscal positions will face tougher challenges in tackling income inequality
Bank of Thailand steps in to curb recent baht strength
Bank of Thailand accelerates measures to advance the development of the new Thai FX Ecosystem and to limit excessive currency volatilities
Thailand strengthens COVID-19 control measures
Apart from the capital city, many provinces have also enforced tougher measures to contain COVID-19, with inter-provincial travels now being...
Thai Exports to grow 4% in 2021
Contributing factors include the recovering world economy and the International Monetary Fund’s (IMF) estimate that the world economy will expand...
Thai Government imposes ban on gatherings over New Year 2021 holidays
TAT would like to remind all that New Year 2021 activities have been cancelled or gone virtual nationwide to avoid...
Thai cabinet allows illegal migrant workers to sign up for 2-year work permit
Migrant workers from Cambodia, Laos, and Myanmar, who are in Thailand illegally, will be able to obtain a 2-year work...
Thailand Saw $1.7 billion Applications in Bio-Circular-Green (BCG) Investments in 2020, BOI Says
The BCG model, as defined by the Thai Government, encompasses industries that allow inclusive, sustainable growth while reducing waste, pollution...
96% of Foreign Investors still confident in Thailand says BOI
The Board of Investment of Thailand’s (BOI) latest survey, shows most foreign investors, estimated at 96%, are still confident in...