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.
by RTT Staff Writer
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