BANGKOK, Oct 6 The World Bank lowered it’s economic growth rate projection for Thailand this year at 1.5 per cent lower than its earlier 3 per cent forecast despite the economic recovery registered in the second half of this year.
Ulrich Zachau, World Bank Country Director for South East Asia, said that the expected economic growth rate was reduced from 3 per cent to 1.5 per cent although the gross domestic product would rise 3 per cent in the second half of this year.
He said that the value of Thai exports would grow by 0.7 per cent, domestic demand would increase 1 per cent and investment in the private sector would expand by 1.5 per cent.
Kirida Bhaopichtir, Senior Economist with the World Bank’s Bangkok Office, said that the economic growth next year would be 3.5 per cent instead of 4.5 per cent as exports will increase by 6.4 per cent, and government investment will rise by 10 per cent, and household consumption would rise 1.5 per cent.
She said that household debt would continue to limit economic growth and the public would remain uncertain about their future incomes.
Ms Kirida said the government’s economic stimulus measures and Bt40 billion financial aid for farmers would inject a cash equivalent to about 1.4 per cent of the gross domestic product.
It will stimulate national economic performance in the short term, she said. The money will mainly come from government budgets. She advised that concerned parties monitor how the government can implement its projects.
