BANGKOK, Jan 1 – Thailand’s economy will grow less than 4 per cent this year due to the on going political turmoil which has driven down consumption and delayed state disbursement, the central bank announced.
Mathee Supapongse, senior director of the Macroeconomic and Monetary Policy Department, said the Thai economy in November dropped from the preceding month in accord with reduced private spending both in consumption and investment.
People have become cautious in their spending given high household debts and declining confidence, he said, adding that private consumption index (PCI) dropped 2.4 per cent.
The Private Investment Index (PII) also dropped by 7.8 per cent as some manufacturers delayed their investment, reflecting a decline in the business index for the fifth consecutive month to 46.9, lower than 47.4 in the previous month, he said.
Mr Mathee said Business Sentiment Index in the next three months will be at 5, a drop from 51.7 in October as some manufacturers have been waiting for higher consumption domestically and globally, and improved political situation.
The Thai currency has depreciated to Bt32.11 against the dollar in November, Bt1 lower from the preceding month but it did not have an impact on inflation which has fallen to a low level of 1.92, he said.
