ID :
14129
Mon, 07/28/2008 - 20:26
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https://oananews.org//node/14129
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BoT lowers Thailand's projected growth for 2008, 2009
BANGKOK, July 28 (TNA) - Soaring oil prices plus slow recovery in public consumption and investment, together with rising inflation, have forced the Bank of Thailand (BoT) to lower its estimate of the country's projected gross domestic product (GDP) for 2008 and 2009, a senior BoT official said Monday.
BoT assistant governor Duangmanee Vongpradhip said the central bank had lowered its growth projection for 2008 to between 4.8-5.8 per cent from a 4.8-6 per cent projection made in April.
Also, the GDP projection for 2009 is also lowered to 4.3-5.8 per cent from 4.5-6 per cent due to those negative factors which had depressed consumer confidence which had caused less spending by the private sector, according to Ms. Duangmanee.
Stressing that the government package of eonomic relief six measures -- most of which will be implemented Friday -- would only cushion the public hardships resulted from rising inflation, she said the measures would only help boost economy around 0.1-0.3 per cent in two years because the measures would last only six months.
Core inflation had already exceeded the target of 0-3.5 per cent for the first time after the central bank announced its core inflation target in 2000, she said.
The central bank has adjusted the core inflation upward to between 2.8-3.8 per cent from an earlier projection of 1.5-2.5 per cent, inflation between 7.5-8.8 per cent from an earlier estimation of 4-5 per cent.
For 2009, core inflation is projected at 3-4 per cent and inflation at 5-7.5 per cent.
Ms, Duangmanee said an expected sharp increase in core inflation from the planned target has resulted from an uncontrollable external soaring global oil price which has affected commodity prices.
The BoT will implement stricter monetary policy to "control core inflation from not rising above 3.5 per cent within the next eight quarters," she said.
Consumption this year is expected to grow 3.4 per cent, investment between 4.3-5.3 per cent, exports 16-19 per cent and imports 27-30 per cent.
The BoT has projected that the country would suffer a trade deficit of around US$1.5-3.5 billion while the current account would enjoy a surplus of between US$1-4 billion in 2008. (
BoT assistant governor Duangmanee Vongpradhip said the central bank had lowered its growth projection for 2008 to between 4.8-5.8 per cent from a 4.8-6 per cent projection made in April.
Also, the GDP projection for 2009 is also lowered to 4.3-5.8 per cent from 4.5-6 per cent due to those negative factors which had depressed consumer confidence which had caused less spending by the private sector, according to Ms. Duangmanee.
Stressing that the government package of eonomic relief six measures -- most of which will be implemented Friday -- would only cushion the public hardships resulted from rising inflation, she said the measures would only help boost economy around 0.1-0.3 per cent in two years because the measures would last only six months.
Core inflation had already exceeded the target of 0-3.5 per cent for the first time after the central bank announced its core inflation target in 2000, she said.
The central bank has adjusted the core inflation upward to between 2.8-3.8 per cent from an earlier projection of 1.5-2.5 per cent, inflation between 7.5-8.8 per cent from an earlier estimation of 4-5 per cent.
For 2009, core inflation is projected at 3-4 per cent and inflation at 5-7.5 per cent.
Ms, Duangmanee said an expected sharp increase in core inflation from the planned target has resulted from an uncontrollable external soaring global oil price which has affected commodity prices.
The BoT will implement stricter monetary policy to "control core inflation from not rising above 3.5 per cent within the next eight quarters," she said.
Consumption this year is expected to grow 3.4 per cent, investment between 4.3-5.3 per cent, exports 16-19 per cent and imports 27-30 per cent.
The BoT has projected that the country would suffer a trade deficit of around US$1.5-3.5 billion while the current account would enjoy a surplus of between US$1-4 billion in 2008. (
