Kasikorn cut’s growth forecast for Thailand to 2.8 pct this year

BANGKOK: Tha i land’s economy will grow at a slow pace of about 2.8 per cent this year based on the country’s weak export performance, according to Kasikorn Research Center.

The research house which previously forecast growth of four per cent said export figures in the first quarter are likely to be affected by low growth in the global economy and a slump in commodity prices.

For the private consumption sector, although current oil prices are lower, it has still to compensate for the weakened purchasing power of farmers and the high level of household debts, said executive chairman Prasopsuk Damrong.

He said the private investment sector is still waiting for the signal to economic recovery and more clarity in the government’s investment plan.

The posit ive side of the economy is the recovery of the tourism industry that was faster than expected, following increased stimulus measures by the government.

Kasikorn Research cut growth forecast for private consumption in

Thailand this year to two per cent from the 3.1 per cent projected in December last year.

Investment growth was reduced to five per cent from six per cent, export growth at zero per cent compared to 3.5 per cent previously, and import growth at 3.5 per cent from 5.5 per cent.

It said inf lation will be lower at 0.5 per cent from a projection of 1.5 per cent previously. — Bernama