CIMB Bank downgrades Thailand’s GDP projections this year and next



BANGKOK: -- The CIMB Thai Bank has adjusted down Thailand’s growth rate projection for this year to 3.3 percent and next year to 2.7 percent.

CIMB Thai senior director for research Mr Amornthep Jawala said that the downgrading of Thailand’s GDP for this year and next means that the country will experience below 3 percent growth rate for five consecutive years since 2013 hence putting Thailand into economic trap with structural problem which needs to be fixed.

He attributed to the declining growth projection to 4 percent contraction of exports which account for 60 percent of the GDP as a result of global economic slowdown with China focusing more on service sector rather than on imports.

He pointed out that low oil prices expected to average 35 US dollars per barrel throughout the year have affected the prices of farm products and commodities.

On imports, Mr Amornthep said imports are expected to contract by 8.2 percent reflecting the fact that there is no increase in production as import of capital goods and raw materials for production has stagnated.

Private sector’s investment for the whole year is expected to contract from 3.9 to 1.9 percent reflecting investors’ lack of confidence in economic performance and their wait-and-see position vis-à-vis the next election.

Source: http://englishnews.thaipbs.or.th/content/159123


-- Thai PBS 2016-04-12

Not the news the ptb want to be hearing. These forecasts need to be higher and postive or training may be required to adjust the forecasters.

Methinks he should head for the hills !

Impossible!

Foreign investment is up, tourism is up, consumer confidence is up, ...

oh, I forgot: corruption is up...

GDP growth for 2016 will be well below 3.3%, possibly less than the actual growth in 2015 of 2.5 (World Bank) -2.8% (Prayut).

However, the prediction that the country will experience below 3 percent growth rate for five consecutive years since 2013 is reasonable. This will place Thailand last in economic growth in the ASEAN countries and hobble its ability to attract foreign investment.

Be realistic...Good.

Well let's just say this is one of the most realistic reviews I have heard in a while.

The Kasikorn ones, although kind of realistic, seem a little bit sugar coated.

Edited April 12, 201610 yr by lkv

Karma,

It is going to get better. Buckle up.

Time machine has 1997 on it, only this time young travelers looking for a cheap place to go will avoid Thailand. The girls are much prettier elsewhere, alcohol is cheaper, and you can buy it any time you want too. R&R - you know. (the bread and butter that keeps money following in). I see Chinese sweat shops everywhere in my crystal ball. The North Korean kind.