BANGKOK, 1 August 2014 The Bank of Thailand has admitted that Thailand economic momentum may not be as strong as earlier expected, although it maintains that 2014’s GDP growth will reach 1.5%.
According to Roong Mallikamas, a senior director at the BOT’s Monetary Policy Department, the GDP expansion is tending towards the lower end of the current forecast, weighed down by the risks associated with unfulfilled state budget disbursement and the unimpressive growth in exports. At the same time, recoveries in consumption and private sector investments have not been continuous – the temporary boost to economic activities experienced in quarter 2 was due to the return of political stability and the football World Cup. The present situation is not worrisome, however, added Ms. Roong.
The business confidence index for the month of August dropped to 49.1, from 49.6 in July. The confidence index for three months in the future dropped to 55.9 from 56.1.