World Bank lowers Thailand’s growth prediction

BANGKOK, October 6 (TNA) - The US-based World Bank has lowered Thailand's economic growth forecast for this year and next year amid the gradual recovery of the Thai economy. Ulrich Zachau, World Bank Country Director for South East Asia, said on Monday that Thailand's expected economic growth rate was lowered from 3 per cent to 1.5 per cent on average in 2014 although the country's gross domestic product (GDP) should expand by 3 per cent in the second half of this year, boosted by Thai export growth by 0.7 per cent, domestic demand by 1 per cent and investment in the private sector by 1.5 per cent. Kirida Bhaopichitr, Senior Economist with the World Bank's Bangkok Office, stated, meanwhile, that Thailand's economic growth should be 3.5 per cent on average in 2015, instead of 4.5 per cent, although Thai exports should expand by 6.4 per cent, public investment by 10 per cent, household consumption by 1.5 per cent, as household debts would continue to limit the national economic growth, while people would remain uncertain about their future incomes. Kirida assessed that the Thai government’s current economic stimulus measures, covering a 40-billion baht-financial aid for local farmers, should inject money equivalent to about 1.4 per cent of the country's GDP, with the money mainly coming from government budgets, which should stimulate the national economic growth in the short term. Kirida suggested that concerned parties help monitor how the Thai government implements public projects. (TNA)