DPM expects slow Q4 on mourning
Deputy Prime Minister Somkid Jatusripitak has admitted the country’s economic growth in the fourth quarter of 2016 is likely to be slower than the previous quarter’s 3.2% year-on-year growth, blaming low consumption in October and November.
He did not, however, provide further details.
The National Economic and Social Development Board (NESDB) is scheduled to report the economic figures for the October-to-December quarter of 2016 today.
Earlier, NESDB secretary-general Porametee Vimolsiri predicted the economy may slow down further in the fourth quarter because of weak sentiment and cutbacks in entertainment since the passing of King Bhumibol Adulyadej on Oct 13.
A crackdown on cheap tours had further reduced the number of visitors from China, one of Thailand’s biggest tourism markets.
The economy grew by 3.2% year-on-year in the July-September period as consumption and public spending slowed from 3.5% growth in the second quarter, and 3.2% growth in the first quarter.
For the first nine months of last year, the economy registered 3.3% growth on average.
The NESDB predicts the economy will grow by 3.2% in 2016, with exports staying flat. It had previously forecast 3-3.5% growth or an average of 3.3% for 2016, while exports were projected to fall 1.9%.
For 2017, the state think tank predicts that the economy will grow 3-4% and exports expand 2.4%.
Key supporting factors for this year’s growth include a recovery of the export sector, which will support the growth of manufacturing and private investment, recovery and acceleration of agriculture, and a continuing high growth of public investment and tourism, according to the NESDB.
It expects the export value, private consumption and total investment to grow by 2.4%, 2.7%, and 5%, respectively. Headline inflation rate will be in the range of 1-2%.