“We still have a chance to grow at the high end of the range if we can speed up budget disbursements and try to boost exports,” Arkhom Termpittayapaisith, secretary-general of the state planning agency, told a news conference today. “Economic growth in the second half will rely more on private investment and tourism, as growth in exports and household spending are still limited. Still, those factors are sensitive to the political situation, making it a key risk for economic growth.”
While the delayed public spending and last year’s high base following the slowdown after the 2011 floods are a challenge, lower inflationary pressure “allows monetary policy to be accommodative,” Arkhom said. Consumer prices rose 2 percent in July from a year earlier, compared to 2.25 percent in June.