Thai central bank to adjust GDP growth below 5.1%

[webfact]

Thai central bank to adjust GDP growth below 5.1%
By Digital Media



BANGKOK, June 29 – The Bank of Thailand (BoT) will review the country’s economic growth, earlier forecast at 5.1 per cent, due to several unfavourable factors, according to a senior official.

Mathee Supapongse, senior director of BoT Macroeconomic and Monetary Policy Department, said the Monetary Policy Committee (MPC) will take the issue into consideration in its meeting on July 10.

Domestic consumption and investment have slowed down while export figures were disappointing and China’s economic expansion was lower than predicted, he said, adding that all factors would be raised in the MPC’s meeting.

The BoT’s recent interest rate cut to 2.5 per cent has helped stimulate domestic spending, he said.

Mr Mathee said the BoT would raise the issue on possible delay of the government’s water management megaproject for two years after the Administrative Court ordered a halt to the scheme, pending environmental health impact assessments (EHIAs) and public hearings.

He said private consumer index dropped 0.2 per cent in May year-on-year due to households’ reduced spending and the government’s diminishing economic stimulus.

Exports, declined 5.1 per cent in May, were worth Bt19.494 billion, Mr Mathee said.

Overseas demand for agriculture produce and fishery products has decreased and the electronics industry shrank by 7.8 per cent while private investment was down by 3.3 per cent.

He said the baht, weakened to Bt30.29 against the dollar in May, will remain volatile.

He called on the public and private sectors to be more careful with risk management. (MCOT online news)


-- TNA 2013-06-29

[Pib]

Ii wouldn't be surprised to see it drop to a little over 4%...and for an emerging market like Thailand that would be considered a low growth rate...while 4% would be considered very good in a developed market like the US or EU, in an emerging market it's low...can still cause pain.

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[how241]

Ii wouldn't be surprised to see it drop to a little over 4%...and for an emerging market like Thailand that would be considered a low growth rate...while 4% would be considered very good in a developed market like the US or EU, in an emerging market it's low...can still cause pain.

Sent from my Samsung S4 (GT-I9500)

+1

[fazza101]

I deal with chinese companies and travel their regularly and beleive me the place is loaded in debt if this doesnt pass onto thailand and region I dony know what will.

[belg]

so so

how is it that exports decline ?

something to do with bad rice ?

and delaying the water management scam ? 300+ billion ... just don't do it... than they can support another year of rice scam

[NeverSure]

Let's not forget that included in Thailand's GDP is the building of all of those condos, the building of the houses for the new home scheme, and the sales of cars for the new car scheme. Take those away and the growth is negative.

I can't find out if the "sales" of rice to the government in the rice scheme is figured into the GDP. I believe it surely is, but can't prove it. I do know that rice sales are figured as a percentage of the GDP in every chart I see.

Take that rice away from the GDP along with the unsold condos and freshly financed homes and cars, and it's actually a negative disaster.