BANGKOK, 7 October 2013 – The World Bank has decreased Thailand’s GDP forecast from 4.5% to 4%, citing the Chinese economic slowdown and the U.S.’s fragile recovery.
Senior economist of the World Bank, Thailand Office, Kirida Bhaopichitr said the economic growth rate of middle-income countries, including Indonesia, Malaysia and Thailand, had slowed down due to lower investment, decreasing global commodity prices as well as below-target export growth.
The World Bank therefore cut the GDP growth forecast of developing countries in South East Asia to 7.1% this year and 7.2% next year. The bank adjusted down the Thai growth projection from 4.5% to 4% but it was still higher than forecasts by other agencies. Ms Kirida revealed that the bank believed Thai exports would recover in the second half of the year in line with the world economy.
The World Bank noted that delays in investment by the public sector, especially in the two-trillion-baht infrastructure mega projects and the 350-billion-baht water management program, might affect Thailand’s economic growth next year and the overall economy in the long run.