BANGKOK, July 8 (TNA) — The World Bank lowers its forecast on Thai economic and export growth on many factors including political concerns.
Kiatipong Ariyapratya, World Bank’s senior economist in Thailand, said the World Bank’s projection of the economic growth rate went down from 3.8-3.9% to 3.5% this year and from 3.9% to 3.6% next year.
He attributed it to political uncertainty based on the coalition government that comprises 19 political parties as well as the trade war. Political uncertainty could shake confidence among people and investors and delay mega projects of the government, he said.
“The Thai economic growth slowed down to 2.8% in the first quarter this year, lower than 3% for the first time since mid-2015,” Mr Kiatipong said.
Besides, the World Bank expects the export growth rate at 2.2% this year, down from its earlier anticipated 5.5%. It forecast the export growth at 2.6% next year. The World Bank foresees inflation at 1.1% this year and 1.2% next year.
Mr Kiatipong also said the expansion of digital financial services among Thai people could create new economic opportunities.
Birgit Hansl, World Bank’s country manager for Thailand, said the Eastern Economic Corridor scheme could significantly support sustainable economic growth. (TNA)
