ADB revises Thailand's GDP growth projection to 3.8%, 4.9% in 2013, 2014

BANGKOK, October 2 (TNA) – The Asian Development Bank (ADB) has revised its forecast on Thailand's gross domestic product (GDP) growth rates to 3.8 per cent in 2013 and 4.9 per cent in 2014, from 4.9 per cent this year and 5 per cent next year it earlier projected. Luxmon Attapich, Thailand-based senior economist of the Manila-based ADB, elaborated on Wednesday that the Thai economy grew by 4.1 per cent year-on-year in the first half of this year, lower than expected, as consumption and investment in the Thai private sector expanded by only 3.4 per cent and 2.4 per cent because of weak exports and domestic consumption. Luxmon said in the second half of this year, domestic consumption is unlikely to recover, as Thailand's consumer confidence index (CCI) has been declining and household debts have been rising; while Thai exports have grown by only 2 per cent so far this year, instead of 7 per cent as earlier expected. According to the senior economist, the Thai government's investment in new transport projects next year will boost investment in the private sector and cushion the national economy. The ADB senior economist cautioned if the Thai government's investment was delayed, it could become a risk factor for the Thai economy. For the time being, the ADB senior economist noted, economies of the world's major industrialized countries, including China, could not expand as expected either, which could affect Thai exports subsequently. Regarding the US government shutdown currently due to its stalled 2014 budget bill, the ADB senior economist assessed that the US political strife and the shutdown should be temporary and should not affect the Thai economy. (TNA)