2012 export growth forecast lowered to 4.5%


BANGKOK, Sept 13 – Thailand’s ministry of finance lowered its export growth forecast for this year from 12.8 to 4.5 per cent, with an economic expansion of 5.69 per cent.

Fiscal Policy Office Director Somchai Sujjapongse said the percentage in response to Europe’s debt crisis and the world’s economic problems. However, he said the commerce ministry’s export growth target remains unchanged at 15 per cent in order to drive the work of officials to achieve the goal.

Mr Somchai said he had reported to Prime Minister Yingluck Shinawatra on the German Federal Constitutional Court’s ruling Wednesday on the European Stability Mechanism (ESM) ratification in order to help bring economic governance to countries in the euro zone.

However, the Thailand’s Fiscal Policy Office believes that the ESM fund would only affect money and capital markets in the short run, while the European Union should need at least another five years to recover from its public debt.