ADB lowers Thailand's estimated GDP growth in 2012 and 2013

BANGKOK, October 3 (TNA) - The Manila-based Asian Development Bank (ADB) has revised Thailand's estimated gross domestic product (GDP) growth downwards for this year and next year, caused by impacts from the ongoing global economic slowdown. Laksamon Atthapit, an ADB senior economist based in Thailand, acknowledged Wednesday that the ADB has revised its economic growth projection for Thailand from 5.5 per cent to 5.2 per cent this year and from 5.5 per cent to 5 per cent next year, as the country's trading partners in Asia, particularly the immense Chinese and Indian economies, have already been affected by the ongoing global economic slowdown. Laksamon pointed out that the manufacturing of Thai export-oriented products, including hard disk drives and circuits, dropped in July 2012, reflecting a decline in global demand; so, total Thai export should grow by only 5 per cent this year, before improving next year, covering electronic and electrical products, rice, rubber and textiles. Laksamon noted that Thai rice is now more expensive than that of competitors; while the Thai government's rice-pledging scheme is considered not complete, as it has not developed quality rice varieties to boost the country's productivity in grains production. According to the ADB senior economist, consumption and investment in the Thai private sector is, however, foreseen to be a major drive of the national economy over the next two years, thanks to the government's economic stimulus measures, namely a nationwide daily minimum wage hike, a tax rebate for first-car buyers, the rice-pledging scheme and low interest rates. The ADB senior economist cautioned, however, that global economic problems remain a major risk factor of the Thai economy, suggesting that Thailand and other developing countries in Asia improve their service sector to make up for declining export and ease relevant regulations, but improving skills of their workers, especially in the service sector. (TNA)