Bank of Thailand on Friday revised down its forecasts for economic growth and inflation and said downside risks and uncertainty emanating from the global economy are likely to increase this time.
The central bank, in its July inflation report, said it now expects the gross domestic product to expand 5.7 percent in 2012, weaker than 6 percent growth projected in May. In 2013, growth is seen at 5 percent compared to previous prediction of 5.8 percent.
The global economy, given its weak outlook and heightened risks, continues to be the major source of downside risks to economic growth, the bank said.
Global demand conditions continued to weigh on export recovery. Merchandise exports will be weaker than previously assessed, as manufacturing exports suffer from sluggish global demand and agricultural exports are negatively affected by contraction in rice exports.
The bank also cut its inflation forecasts and now expects headline inflation to b 2.9 percent this year and 3.4 percent in 2013. This compares with the previous projection of 3.5 percent each this year and the next.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.