ADB cuts Thai growth forecast
BUSINESS: The Asian Development Bank (ADB) pared down its economic growth forecast for Thailand this year to four per cent from its earlier estimate of 4.5 per cent, ADB country director for Thailand, Craig Steffensen, has announced.
Thursday 22 September 2011, 04:52PM
Mr Steffensen said the revision was due to the fact that the economy in the first half of this year expanded at a rate of 2.9 per cent, lower than earlier projected due to the impact of the March 11 earthquake and tsunami in Japan, together with the debt crisis in the US and Euro-zone countries.
The bank has also revised down the country’s gross domestic product (GDP) next year to 4.5 per cent from the earlier forecast of 4.8 per cent, Mr Steffensen said, adding that the rate remains satisfactory.
ADB economist Luxmon Attapich said the bank has been monitoring the Government’s implementation of its fiscal policy to stimulate the economy and boost peoples’ income, watching out for signs that it may cause inflationary pressure.
Clearly it saw some signs because it has revised this year’s inflation forecast from its earlier estimate of 3.5 per cent to 3.8 per cent, though it added that it believes the rate is likely to drop to 3.2 per cent next year.
The bank was confident that Thailand’s fiscal position remains strong enough to accommodate the Government’s policy, Ms Luxmon said. – MCOT