The Bank of Thailand has slashed GDP growth figures to only 2.7 for the country and it is expected that a further reduction will happen unless a new government comes into power.
Thus follows on the results of the recent elections which have been ruled void. Paiboon Kittisrikangwon, the Deputy Director for Monetary Policy for the Bank of Thailand, stated today that the county’s GDP growth projections will be reduced to 2.7 which is lower than the 3 previously projected.
He also stated that a further reduction might be in the cards as a result of the Constitutional Court’s ruling that the February 2 elections were void thus making the likelihood of setting up a new government unlikely.
He goes on to say that local consumption figures have also dropped and this taken alongside the reduction in private sector investment of 0.5 percent will dramatically affect the country.
Furthermore, the delay in the formulation of the 2015 budget which has fallen behind by a quarter as a result of the dissolution of parliament as well as the drop in investments for irrigation projects – to only 1.2 billion Baht; and basic infrastructure projects – to only 1.7 billion Baht; will adversely affect GDP growth projections. Only national exports are showing signs of improvement following along global economic recovery and are expected to grow about 4.5 percent.
As for the overall economic outlook for the country in the year 2015, signs are quite promising that the economy will return to its normal growth number of 4.5 percent. This is a result of projected improved consumption and investments from the private sector as well as the projected increase in national exports by 7.7 percent.
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