Ministry cuts GDP forecast as stimulus package goes for Cabinet approval today

[webfact]

Ministry cuts GDP forecast as stimulus package goes for Cabinet approval today

By THE NATION

 

Lawan Sangsanit, director of Fiscal Policy Office

 

THE FINANCE Ministry yesterday revised the projection of this year’s GDP growth to 3.8 per cent, down from the previous forecast of 4 per cent.

 

The revision is in line with Thailand’s economic situation, which has been slowing down in the first to second quarter of this year.

 

The ministry will, however, propose its economic-stimulus package to the Cabinet today.

 

Lawan Sangsanit, director of Fiscal Policy Office, said that the country has also witnessed a decline in exports due to the economic slowdown of its trading partners as well as a trade war between China and the US. The Finance Ministry also revised this year’s export growth down from 4.5 per cent to 3.4 per cent.

 

“The economic figures released for March and the first quarter of this year reflect the local investments, which are actually slowing down. Both in the government and private sector, disbursement of the investment budget and import of machinery have respectively increased slightly over the period.

 

Even with higher private consumption, such risk factors may have an impact on the slowdown of the Thai economy.”

 

Lawan said that the measure would require a more than Bt10 billion investment budget. However, it depends on the decision of the Cabinet whether to launch new measures which would help increase economic growth by 0.1 per cent by the end of this year.

 

“However, we expect that the Thai economy will grow better in the second half than in the first half. The GDP growth set for the second half of this year is at between 4.5 per cent and 4.6 per cent after the country has its new government, and the existing economic policies and stimulus measures have been continued,” he said. 

 

Source: http://www.nationmultimedia.com/detail/Economy/30368579

 

-- © Copyright The Nation 2019-04-30

[Srikcir]

7 hours ago, webfact said:

THE FINANCE Ministry yesterday revised the projection of this year’s GDP growth to 3.8 per cent, down from the previous forecast of 4 per cent.

It was the World Bank that first projected 3.8% for Thailand.

Apparently, he's the last one to get the memo that the recent forecast has dropped to 3.6% according to SCB that is more consistent with Thailand’s February 2019 GDP growth at 3.3%, according to Thailand’s National Economic and Social Development Board and near the low end of NESDB's forecast range at 3.5%.

[Eric Loh]

7 hours ago, webfact said:

The ministry will, however, propose its economic-stimulus package to the Cabinet today.

Stimulus is a short term fix. Longer term need more structural changes like an elected government for a full 4 years uninterrupted term. 

[Cake Monster]

Even at growth forecast range of 3.5%,I fail to see why the Government need to introduce "Stimulus Packages  "

Is the slow down in the Thai Economy worse than is being bandied around ?

[RotBenz8888]

Strong Bath doesn't have any negative impact on the economy?

[mok199]

When will this High Baht be corrected......