FPO cuts growth forecast to 4.5%, stimulus measures prepared


BANGKOK, 1 July 2013 The Fiscal Policy Office (FPO) has lowered this year’s GDP growth projection from 5.3% to 4.5% while the Ministry of Finance is prepared to launch stimulus measures in a bid to raise the economic growth to the target. 

Permanent Secretary for Finance Areephong Phucha-um said a set of stimulus measures would be issued in the second half of the year. He urged local government units to speed up their disbursement of the 2013 budget in order to boost spending. The Thai economy had a tendency to slow down following the sluggish economy of 14 trade partners and decreasing domestic spending following the expiration of the government’s First Car tax rebate policy, Mr Areephong said.

However, the Permanent Secretary indicated that the Thai economy stood a chance of growing better as the baht currency started to depreciate. The weaker baht was good for the export sector, he said.