Economic expert forecasts Thai GDP at 5-5.5% due to Eurozone crisis and Thai political conflicts

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BANGKOK, 6 July 2012 – A leading economic expert has predicted that the fallout from the Eurozone debt crisis and worries about local political conflicts may push the country’s GDP down slightly this year.

Rangsit University’s Economics Faculty Dean Anusorn Tamajai said on Thursday that the financial crisis within European Union will inevitably affect the global economy and Thailand.

He stated that, with the pressure from worries over the political situation in the country, Thai GDP in 2012 will likely end up at 5-5.5 percent, slightly lower than the previous estimate of 5.8-6.5 percent.

Mr. Anusorn also forecast that the export sector will see a smaller growth of 7-8 percent this year but the inflation rate will ease from the earlier prediction of 3.5-4.5 percent to 3-3.5 percent.

But with risks from the Eurozone debt crisis fallout at bay, he urged the government to come up with effective measures to protect Thai exporters and importers.

Mr. Anusorn also suggested that, in the worst-case scenario, the impact of the crisis in Europe will force Thai economic growth down to less than 3 percent in 2012, although such chances are very slim.