Thread: BoT decreases Thailand's economic growth projection

BoT decreases Thailand's economic growth projection




BANGKOK, Oct 18 (TNA) – The Bank of Thailand (BoT) has decreased the country's economic growth estimate by 0.50-0.80 per cent for this year and next year, citing persistent domestic political turmoil and the economic crisis in the United States as key reasons for the decision.

Duangmanee Wongpratheep, the central bank's assistant governor overseeing the Financial Policy Group, revealed the central bank had revised its economic growth projection downward to 4.3-5 per cent this year and 3.8-5 per cent next year from the 4.8-5.8 per cent and 4.3-5.8 per cent targeted earlier.

She said the bank had lowered the growth estimate because Thailand's economy in the second and third quarters grew more slowly than expected.

Consumer, investor, and tourist confidence alike have been undermined by the ongoing political disturbances and the global economic slowdown.
Under the circumstances, the overall export and investment sectors have been affected.

At the same time, the state budget disbursements are lower than targeted because the business community felt worried about a possible change of the government, which could lead to an inconsistency in the investment policy.

BoT estimated that state investment will contract by 2.3 per cent and that public consumption will fall by 0.5-1 per cent this year, but would instead increase to 4.5-5 and 7-8 per cent respectively.

Private consumption will decline to 2.5-3.5 per cent this year but rise to 3.5-4.5 per cent next year, and private investment will expand 4-5 per cent this year and 5-6 per cent next year.

In addition, the Thai economy is still experiencing risk factors from the world economic crisis and the worse-than-expected economic slowdown of the country's trading partners.

The bank forecast that exports will grow at only 3.5-6.5 per cent next year against 6-9 per cent this year while imports would drop to 5.5-8.5 per cent this year and 4.5-7.5 per cent next year.

The balance of trade is expected to be in surplus of US$1-3 billion for this year and in deficit of $1-4 billion in the coming year.

Thailand's current account balance is expected be in surplus of only $1-4 billion because the tourism sector had expanded at a slower pace that expected. (TNA)

enews.mcot.net

She doesn't mention a war with Cambodia.

Probably best not to or it may scare the tourist away.

A few more pictures of dead bodies on the streets of Bangkok should sort out the tourism figures.

BoT chief warns of spread of financial crisis to Thailand



BANGKOK, Oct 18 (TNA) – Bank of Thailand (BoT) Governor Tarisa Watanagas on Friday indicated the overall Thai economy and loan extension would grow at a slower pace next year because the global financial crisis is expected to spread to Thailand.

She said the world financial meltdown would definitely affect the Thai economy sooner or later.

A close watch on the situation must be kept because no one dared project the direction of the crisis. Mrs. Tarisa indicated.

However, she revealed the economy had still expanded rather satisfactorily.

"The financial crisis is expected to gradually affect the economy. Next year, the impacts will be more severe than this year," she advised.

"With economic sluggishness, everyone must adjust oneself. Exporters in particular must brace for the volatility of the global financial crisis and economic slowdown of trading partners.

Thailand must increase local demand and restore confidence for the sake of economic growth, she explained.

Mrs. Tarisa said that employment in Thailand had not yet been affected by the global financial crisis.

Overall, incomes earned by workers had not fallen to a worrisome level. The number of jobless is smaller than that of other countries affected by the bubble burst.

While the asset value of the affected countries had dropped, that of Thailand had not.

The key to solving the problem, she suggested, is to restore confidence so that the public would turn to spend more.

Regarding liquidity in the financial system, the BoT chief said it is sufficient to lending to the country's economic sector.

She conceded some banks are reluctant to lend under the current economic slowdown situation as reported because they had to be more careful regarding extending loans. (TNA)

enews.mcot.net

Mrs. Tarisa said that employment in Thailand had not yet been affected by the global financial crisis.

dream on , why the hell do they all do that and destroy any credibility they may have .................

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Originally Posted by Mid

dream on , why the hell do they all do that and destroy any credibility they may have .................

What she means is "My job is safe ...... for now."