Fiscal Policy Office to cut GDP forecast to 3%

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BANGKOK, 21 November 2012 The Fiscal Policy Office has lowered its GDP growth forecast for this year to 3%, down from the 3.7% earlier predicted. 

According to Director of the Fiscal Policy Office Somchai Sujjapong, the Office’s revised 2013 GDP growth rate has been influenced by a 3% GDP projection cut by the National Economic and Social Development Board (NESDB). The NESDB’s lower projection came on the back of its own projection of a 0% export growth for this year, the official said.

However, the director said the Thai economy had already escaped recession technically,after the GDP in the third quarter expanded 2.7%, a bit higher than the second quarter’s growth of 2.6%.

As for the Thai economy in 2014, the Office forecast that it would grow by up to 5.1%, with the possibility of rising further due to the recovering global economy and expanding Thai exports. Funding from the government’s 2-trillion-baht loan will also help bolster the economy next year.

The ongoing political problems would not affect the economy provided that no violent incident occurred, said Mr. Somchai. He, however, suggested the country continue keeping a close watch on politics.