THAILAND’S economic recovery has been uninspiring. Economic growth
continues to be reined in by weak private consumption and investment and
the absence of growth in exports. Household debt remains perilously high, and
the country’s future political path is still uncertain. Consequently, consumer
confidence has tumbled, declining for 8 consecutive months to a 15-month
low in August 2015. On the external front, weak demand has stymied growth
in exports. Further cause for concern stems from a slowing Chinese economy,
the devaluation of the yuan, and the impending interest rate hike by the US
Federal Reserve.
Thailand’s weak economic performance over the first half of the year resulted in the Bank of Thailand (BOT) lowering its annual growth forecast for 2015. Factors promoting growth through the near term such as a recovery in tourism, low oil prices, and an accommodative monetary policy are likely to be overshadowed by the downside risks to overall economic performance. It is therefore likely that the BOT will further lower its forecast for GDP growth in 2015.
THAILAND’S economic recovery has been uninspiring. Economic growthcontinues to be reined in by weak private consumption and investment andthe absence of growth in exports. Household debt remains perilously high, andthe country’s future political path is still uncertain. Consequently, consumerconfidence has tumbled, declining for 8 consecutive months to a 15-monthlow in August 2015. On the external front, weak demand has stymied growthin exports. Further cause for concern stems from a slowing Chinese economy,the devaluation of the yuan, and the impending interest rate hike by the USFederal Reserve.Thailand’s weak economic performance over the first half of the year resulted in the Bank of Thailand (BOT) lowering its annual growth forecast for 2015. Factors promoting growth through the near term such as a recovery in tourism, low oil prices, and an accommodative monetary policy are likely to be overshadowed by the downside risks to overall economic performance. It is therefore likely that the BOT will further lower its forecast for GDP growth in 2015.
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