SCB: 2013 GDP to grow 4.5-5

Published on June 29, 2013 by TFP   ·   No Comments

BANGKOK, 29 June 2013 (NNT) â€" Siam Commercial Bank (SCB) forecasts that Thailand will see only 4.5-5 percent growth in this year’s GDP. The lower-than-expected growth is due the slowdown in the country’s export.

The SCB has adjusted down its anticipation on Thailand’s GDP growth to 4.5-5 percent this year, revealing that Thailand is still faced with many economic risk factors such as the world economic slump and the decrease in the private sector’s investments. However, the government’s spending, especially on the water management project, should help the country meet the GDP growth target of at least 4.5 percent.

In the first 5 months of this year, Thailand’s export sector saw a small growth of only 1.9 percent, mostly due to the shrinkage in export to China. Despite a positive sign in the latter half of the year, overall economy, according to the SCB, will be at a limited growth rate.

Furthermore, the bank reveals that domestic consumption has a tendency to drop in the second half as all of the cars under the government’s first car buyer program will have been delivered. To make matters worse, the reduction of rice pledging price from 15,000 baht to 12,000 baht per ton will lower the purchasing power of the people, making the overall economy grow at a slow pace.

( Thammarat Pramotmaneerat)

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Article source: http://www.thethailandlinks.com/2013/06/30/scb-2013-gdp-to-grow-4-5-5/