BoT adjusts down GDP growth to 4.2% this year

[Lite Beer]

BoT adjusts down GDP growth to 4.2% this year

BANGKOK, 20 July 2013 (NNT) – The Bank of Thailand (BoT) has adjusted its GDP growth anticipation down from 5.1 percent to 4.2 percent this year, saying the overall Asian economy will be slow, causing Thailand’s export to drop.

According to Bot Assistant Governor Paiboon Kittisrikangwan, Thailand will only see a 4.2 percent rise in its 2013 GDP growth, 0.9 percent lower than its previous anticipation. He said not only the world economy has a tendency to drop, Asian economy as well, especially in China, will see a slow growth, causing the Thai export sector to suffer.

He said other factors contributing to the small GDP growth are the rise in household debt and the decrease in domestic consumption as the government’s economy stimulus policy like the first car buyer scheme has come to an end.

Mr. Paiboon also expects the 350 billion baht water management project to be delayed, saying only 19 billion baht will be disbursed.

Lastly, the Assistant Governor said next year, Thailand will see a 5 percent GDP growth and up to 8 percent rise in its export as US, European, and Japanese economies could see a recovery.

-- NNT 2013-07-20

[jpduggan]

'' saying the overall Asian economy will be slow, causing Thailand’s export to drop.'' Thainess... blame everybody else. Nothing to do with their own inaccurate predictions.

[yoshiwara]

'' saying the overall Asian economy will be slow, causing Thailands export to drop.'' Thainess... blame everybody else. Nothing to do with their own inaccurate predictions.

The question is what fiscal spending commitments have been made dependent on a 5.1% growth rate and therefore subject now to review or increased borrowing requirements. A fiscal responsibility so over to the government chaps. So, Yingluck, have you put into process a budget review or are you expecting 2014 to over-compensate, in which case..................................

[GeorgeO]

5.0 per cent growth next year....?

I personally believe that the sh1t will have already hit the fan before the start of next year, and Thailand is going to start to suffer for the populist policies that this government has clung to.

The rice fiasco will prove to be a major financial burden, not only now, but also in terms of Thailand's future position in the rice growing world. There will also be a huge rise in the availability of nearly new second-hand cars, as the "first-time buyers" start to default on payments, also resulting in a rise in bad debts in many of the banks.

Add to that the water management fiasco, and all the missing money so far in this and other projects, and Moody's (and the like) will have a field day with this country's credit rating.

p.s. forget about any hopes of borrowing 2.2 trillion....!!

Edited July 22, 2013 by GeorgeO

[Gomyway]

Since the Japanese election from yesterday the future way is clear and NOBODY must hope or dream about 5% next year anymore.