BoT to keep close eye on possible fallout from Chinese economic slowdown

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BANGKOK, 18 July 2012  – The Thai central bank is keeping a close eye on the Chinese economic conditions, for fears of its impact on the local economy. 

The Bank of Thailand (BoT)’s macro-economy division director Songtham Pinto said on Tuesday that China’s record of 7.6-percent economic growth in the second quarter of this year represents the biggest slowdown in 3 years.

Mr. Songtham stated that the latest data from China is inevitably posing possible threats on Thai economy, although the level of seriousness remains to be seen.

He said that the uncertainties surrounding the Chinese economy remain even though Prime Minister Wen Jiabao has assured that Beijing will continue to drove the world’s second-largest economy to grow further.

The BoT director went on to caution that the global economic direction is also another key factor that may impact the Thai economy, with both financial and capital markets now keeping an eye on how the latest measures from the Euro summit will yield any fruits.

In any case, he is confident that with the Thai export industry still resilient and Thai economic fundamentals strong, the country’s GDP will be able to achieve a growth rate of 8 percent this year, without any special measures needed.