FPO revises Thailand's GDP growth to 4.5% in 2013

BANGKOK, June 28 (TNA) - The Ministry of Finance has revised its projection of Thailand's economic growth this year, from 4.8 per cent to 4.5 per cent, due to economic slowdowns in trading partners. Somchai Sujjapongse, Director-General of the ministry's Fiscal Policy Office (FPO), on Thursday told reporters of the revised projection of Thailand's gross domestic product (GDP) growth this year, reasoning that the economies of the country's trading partners have been recovering very slowly, especially those of China, the United States and Europe. Somchai acknowledged that the Finance Ministry has also revised Thailand's export growth projection downwards in 2013, from 9 per cent to 5.5 per cent. According to the FPO chief, investment in the Thai private sector is now foreseen to expand by only 5.7, instead of 9.3 per cent as earlier expected, and household incomes to slow down due to the declining prices of some Thai farm products including natural rubber. Besides, Thailand's headline inflation is now expected to run at 2.5 per cent, instead of 3 per cent as earlier anticipated, due to a drop in world crude oil prices, to 106 US dollars per barrel, and in commodity prices. The Finance Ministry also predicted that capital inflows should return to Thailand, where economic fundamentals remain strong, pointing out what can stimulate the national economy include quick disbursements for the government's new 350-billion-baht water management schemes and 2-trillion-baht transport development schemes, as well as the quick spending of the administration's annual budget and tourism promotion. Meanwhile, Porametee Vimolsiri, Deputy Secretary-General of the National Economic and Social Development Board (NESDB), projected at a public discussion that Thailand's GDP should grow by 4.7 per cent this year, instead of 5 per cent as earlier forecast, warning of possible capital outflows late this year and recommending domestic tourism promotion to stimulate the national economy in the second half of this year. (TNA)