IMF sharply cuts Thai GDP forecast to 2.5%

[Lite Beer]

ECONOMY
IMF sharply cuts Thai GDP forecast to 2.5%
The Nation

BANGKOK: -- The International Monetary Fund (IMF) sharply cut the 2015 growth projection for Thailand, expecting the economy to expand by only 2.5 per cent.

Though this showed a recovery from the 0.9 per cent growth rate in 2014, it represented a 1.2 percentage point cut from the projection revealed in April. The IMF also slashed the 2016 growth projection for Thailand from 4 per cent to 3.2 per cent.

At the rates, Thailand would experience the slowest growth compared to other four countries grouped as Asean-5. Asean-5 as a whole, which includes Indonesia, Malaysia, the Philippines and Vietnam - is expected to expand by 4.6 per cent and 4.9 per cent in 2015 and 2016, respectively. The projections were cut by 0.1 and 0.2 percentage point from July figures.

In April, the IMF raised the projection for Thailand from 3.5 per cent to 3.7 per cent but cited a number of downside risks from possible policy slippages, weaker-than-expected private demand, political uncertainty, global financial market volatility, and slower growth in advanced and emerging economies. It said Thailand’s private investment was being hampered by low capacity utilisation, weak external demand, and concerns over political uncertainty, while private consumption was weakened by high household debt and tighter credit conditions.

In the updated World Economic Outlook report, the IMF cut global economic growth forecast by 0.2 percentage point to 3.1 per cent in 2015 and 3.6 per cent in 2016.

Source:http://www.nationmultimedia.com/breakingnews/IMF-sharply-cuts-Thai-GDP-forecast-to-2-5-30270425.html

-- The Nation 2015-10-07

[carstenp]

me think, with all the economic data from Thailand and global figures, baht is strengthen almost 1.5% in 1 day

[BigBadGeordie]

IMF not understand. Happy No 1 Thai.

[MadMac]

All aliens are charged at least 200B now. IMF has clearly no idea. Need adjustment.

[Srikcir]

IMF's cut to 2.5% growth rate for 2015 is belatedly consistent with WB's recent cut to 2.5% and KResearch's cut to 2.5% made earlier in the year, albeit KR later raised the prediction to 2.8%.

The current government's failure to put a viable constitution before a public referendum is likely contributing to continued investor uncertainty over political stability, perhaps nullifying the small increase in GDP growth that Somkid hopes to achieve for the remainder of 2015 with his populist funding. Should the next draft constitution fail to be timely presented to a referendum, there will be a greater flight of capital out of Thailand and the nation will be trapped in a depression.