ADB to lower Thailand’s 2013 GDP projection

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BANGKOK, Nov 25 – The Asian Development Bank (ADB) is reducing Thailand’s 2013 gross domestic product projection from an earlier projection at 3.8 per cent given the disappointing Q3 economic growth and a slight export expansion in Q4, its senior economist said today.

Luxamon Attapich said the political turmoil has shaken domestic consumption, consequently affecting the country’s economic growth but the export sector will not suffer a deficit.

Next year’s economy should be better than this year thanks to growing exports in accord with the strengthened global economy and the Bt2 trillion investments on infrastructure which should accelerate private investment, she said.

Ms Luxamon warned that the public sector’s budget must be disbursed as planned since successive investments will push forward the economy.

She expressed hope that the political unrest will end as soon as possible, or it will negatively impact consumer confidence.

Regarding external impacts, particularly the US economic stimulus via its quantitative easing measures, Ms Luxamon said Thailand may encounter capital outflows due to higher global interest rates.

The global capital market should have acknowledged the trend of capital flows and have been prepared since mid-this year, she said, adding that Thailand’s fundamentals remain good and the country should be able to cope with volatility.