World Bank to lower Thai GDP from 5% to 4-4.5%

By English News

BANGKOK, Aug 24 – The World Bank will adjust its forecast of Thailand’s gross domestic product (GDP) for this year from 5 per cent to 4-4.5 per cent due to lower economic and export growth, a bank senior economist said today.

Kirida Bahopichitr said the Thai economy was not in recession but expansion was slight compared to last year when the country enjoyed a high GDP growth thanks to the government’s post-flood revival measures and other economic stimulus.

She predicted a higher economic growth next year when the economic fundamentals would return to normal and the global economy would possibly bounce back – a positive factor for Thailand’s export sector.

The government’s investment on infrastructure development will be clearer next year while the tourism industry will remain sound and the interest rate favourable to investment, she said.

Ms Kirida said overall consumption would be rather stagnant due to high household debt.

She indicated that the weakened baht at Bt32 against the dollar resulted from several factors including capital outflows given investor concerns over the US Federal Reserve’s slowdown on quantitative easing (QE) and the country’s current account deficit.

The senior economist was optimistic that the global economy would improve and the US monetary policy on QE would not be to harsh, contributing to Thailand’s export growth and surging foreign investment in Asia and Thailand.

Asia will become the hub of economic growth in the next decade and Thailand has to be well prepared for the future capital movements, she said.

Ms Kirida ruled out speculations that the baht would be attacked and weakened as with the Indonesian and Indian currencies, explaining that, unlike in the past, the Thai baht’s floating exchange rates were well managed and the Thai economic fundamentals were solid. (MCOT online news)

-- TNA 2013-08-24

Clearly the World Bank fails to appreciate 'Thainess', and places too much reliance on actual numbers, rather than 'white lies' from senior government officials !

Perhaps they should be invited to some vague economic-reform-meeting in Bangkok, all-expenses-paid & 5-star-hotels naturally, where they can be 're-educated' ?

What is this domestic consumption stagnation due to high household debt?

I thought everyone in Thailand (apart from me) was supposed to be richer than ever.

I wonder what nationality Ms. Kirida is ?

Clearly the World Bank fails to appreciate 'Thainess', and places too much reliance on actual numbers, rather than 'white lies' from senior government officials ! alt=facepalm.gif>

Perhaps they should be invited to some vague economic-reform-meeting in Bangkok, all-expenses-paid & 5-star-hotels naturally, where they can be 're-educated' ? alt=rolleyes.gif width=20 height=20>

The World Bank is a preposterous bureaucratic organization any way. A bunch of people drawing huge salaries and benefits sitting around at expensive lunches writing a paper every 3-6 months and making a quarterly forecast that no one ever checks up on. Their papers are merely cuts and pastes from previous papers years ago and they work off templates with lots of mumbo jumbo statistics and comparisons that the average business reader would never understand. The World Bank and its people are very over rated and fail to ever generate any action.

Forgive me, but aren't they negative after 2 quarter s?

How will they get 4.5% x 2 in the last 2 quartets?

Must have been that over estimate of tourist that were suppose to flood Suvarnabhumi.

What is this domestic consumption stagnation due to high household debt?

I thought everyone in Thailand (apart from me) was supposed to be richer than ever.

Once again the man in Dubai proved he can´t be trusted, he is a smuck.

Edited August 24, 201312 yr by Skywalker69

I wonder what nationality Ms. Kirida is ?

She is Thai, see link.

http://www.worldbank.org/en/about/people/kirida-bhaopichitr

I wonder what nationality Ms. Kirida is ?

She is Thai, see link.

http://www.worldbank.org/en/about/people/kirida-bhaopichitr

Maybe it explains why she too doesn't see any problems

Good to see someone is dancing to Yingluck fiddling, while the economy burns.

Edited August 24, 201312 yr by waza

Good to see someone is dancing to Yingluck fiddling, while the economy burns.

Steady on old chap, think of it from the Ms. Kirida's perspective, if she had told the truth, she would have been sued for defaming Thailands reputation, she might get a visit from Yinglucks stormtroopers riot police at home, and of course our favourite red shirts would be threatening to burn down the World Bank...

We have to trust Dear Yingkuck, she said no recession, so no recession....got it ?....