World Bank trims Thailand growth rates this year and next

[webfact]

World Bank trims Thailand growth rates this year and next



BANGKOK: -- The World Bank has cut Thailand’s economic growth rate from 3.5 percent to 2.5 percent and predicted that the growth next year would be further trimmed to just 2 percent from 4 percent, according to the bank’s latest regional report released on Monday.

The report, East Asia Pacific Economic Update, said that exports would remain subdued, growing by less than 1 percent in dollar terms as key export prices fall and demand from China and Asean weaken.

The report added that imports of goods would continue to contract as prices of fuel imports, around a fifth of total imports, remain low.

The bank said household consumption and private investment should recover only modestly from last year while public spending would contribute to almost half of the growth this year.

The main challenges for Thailand continue to be the uncertain global environment affecting Thai exports and internal stability, said the report.

As far as tourism industry is concerned, the report said the industry was expected to record healthy growth, in a context of enhanced political stability, although prospects may be hampered by the attack on the Erawan Shrine in August.

But capital inflows would continue to be volatile, with a risk of experiencing potentially larger outflows should there be an increase in interest rates in the US, said the bank.

Source: http://englishnews.thaipbs.or.th/world-bank-trims-thailand-growth-rates-this-year-and-next

-- Thai PBS 2015-10-06

[Wilsonandson]

The only way is down. Wait until the single gateway is approved and watch the bottom fall out of the Thai Economy. The big question is though, do the powers in charge care about the decline in the economy? IMHO they don't.

[Thailand]

This will come as a surprise to nobody but ---------- !

[Hawk]

I suppose the government will make an official complaint to the world bank now, inaccurate figures.

[gandalf12]

The only way is down. Wait until the single gateway is approved and watch the bottom fall out of the Thai Economy. The big question is though, do the powers in charge care about the decline in the economy? IMHO they don't.

Of course they do. They wont get their back handers

[bamnutsak]

Bloody World Bank. Sue them for Defamation.

They don't understand the unique Thai economy, which will recover in week 51.

[waldroj]

"As far as tourism industry is concerned, the report said the industry was expected to record healthy growth...". Expect to see the TAT spin on this statement in coming TV news items!

All in all, the good news about tourism, combined with the fact that, while exports would remain subdued, imports of goods would continue to contract should give the government cause for some optimism about the Thai economy.

[jabis]

Growth rate reduced, but baht got stronger vs €, $ and £ in FX - what is this sorcery?

[Srikcir]

Prediction of an even slower growth rate for 2016 by the World Bank is gutsy but honest. Now maybe S&P will follow suite and downgrade Thailand's bond rating while the BOT does another currency cut.

On the economic flip side of the coin, this year and next wil be an opportunity for Vietnam, Cambodia, Malaysia and Indonesia to fill Thailand's growth vacuum with more progressive and pro-foreign investment opportunities. Furthermore, if Thailand's fails or delays to join PTT, other ASEAN countries' access to PTT's lucrative major foreign markets will see their economies CONTINUE to out grow Thailand's GDP.