Thai finance ministry lowers GDP growth for 2013.

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Thailand’s forecast of the country’s economic growth for this year has been trimmed from 4.8 percent to 4.5 percent, according to Fiscal Policy Office director-general Somchai Sujjapongse.

He said economic recovery of Thailand’s trading partners – including China, the US and Europe – is slow, compelling an adjustment of this year’s exports from 9 to 5.5 percent.

Investment in the private sector will expand at only 5.7 percent, from the original forecast of 9 percent while disappointing sales of agricultural produce, especially rubber, will wreak havoc on household revenue growth.

Inflation, earlier predicted at 3 percent, will be only 2.5 percent thanks to declining oil prices and commodity prices.

Thailand’s growth at 5.4 percent in Q1 and 4 percent in Q2 should be higher than 4 percent in Q3 and Q4, Somchai said.

He said the Finance Ministry was confident that capital outflows will be short term due to Thailand’s strong fundamentals and the government’s economic stimulus projects.

The government is also emphasizing tourism promotion which resulted in an arrival of 1.85 million tourists to the kingdom in May, or a 19.4 percent increase, he said.