BANGKOK, 25 October 2013 – The Bank of Thailand has sharply cut the country’s gross domestic product (GDP) forecast for the year to 3.7 percent from 4.2 percent.
According to Assistant BOT governor Paiboon Kittisrikangwan, delays in government spending and off-budget infrastructure and water-management projects as well as lackluster domestic demand have influenced the adjustment.
Inflation forecasts have also been revised down for both 2013 and 2014. Headline inflation forecast for 2013 and 2014 is chopped from 2.3 per cent to 2.2 per cent, and from 2.6 per cent to 2.4 per cent, respectively.
The BOT also predicted a 4.8 percent growth next year due to a planned infrastructure development investment. Export figures are set to rise 7 percent, as key markets such as the United States, European countries, Japan and China improve.
