BANGKOK, 17 August 2015 – The National Economic and Social Development Board (NESDB) again has cut its GDP growth forecast for this year to 2.7% to 3.2% from an earlier prediction of 3% to 4%, following the ongoing fall in export to 4.9% in negative zone in the first half of 2015, Arkhom Termpittayapaisith, secretary general of the NESDB revealed on Monday.
The slash in the annual GDP growth estimate is in line with Thailand’s lower export due to economic slowdown threatening its trade partners across the world. Falling crude oil price also causes lower prices of general goods. The same fortune is seen in prices of agricultural products following the global economic recession.
These negative factors triggered the country’s GDP growth of 2.8% in Q2, lower from 3% in Q1. As a result, Thailand’s GDP grew by 2.9% in the first half of this year.
Export value in Q2 slumped to -5.5%, worse than that of Q1 standing at -4.3%. Half –year exports grew -4.9% in value, prompting the NESDB to revise down the the projected export value for this year to -3.5%, instead of the 0.2% positive growth.
The NESDB secretary general assumed that GDP growth was slowly recovering despite the disappointed figures of Q2. He suggested the government expedite its planned disbursement of state investment budget if it wants to see a 3% growth of GDP for the rest of this year. The government spending would force a circulation of capital flow and stimulate the confidence of the private sector.