Thai central bank has raised 2012 GDP from 6.0% to 4.9%

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BANGKOK, 12 May 2012 – The Bank of Thailand has raised both its 2012 GDP growth projection and the inflationary target for this year. 

Bank of Thailand (BoT) Assistant Governor Paiboon Kittisrikangwan said that the BoT has decided to raise the 2012 GDP growth target from 4.9 percent to 6.0 percent, while adjusting up the growth project for 2013 from 5.6 percent to 5.8 percent.

Mr. Paiboon said that the upward adjustment was driven by the faster-than-expected recovery in the manufacturing sector and local investment.

He said that the Monetary Policy Committee has estimated that while global economic risks still remain, they will not have much of an impact on the Thai economy. The BoT’s Assistant Governor reasoned that such a confidence has been attributed by the fast recovery in the demand from the private sector and the manufacturing sector, as well as in domestic consumption and exports.

Mr. Paiboon went on to say that the higher GDP growth projection was predicted as all industries are expected to become stronger than before last year’s flooding within the second quarter of this year.

He added that the Thai economy will likely be driven forward by the government’s water management policy, deficit budgeting for fiscal 2012-2013 and its demand stimulus measures.

In addition, the central bank’s Assistant Governor said that the BoT also raised its headline inflationary target for this and next year from 2.2 and 1.7 percent to 2.5 and 2.1 percent, respectively.