2011 economy to expand only 1.5%: NESDB
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The National Economic and Social Development Board on Monday slashed Thailand's economic growth estimate for this year to 1.5 per cent due to impacts from the nation's worst floods in decades.
NESDB's previous growth estimate for 2011 was 3.5-4 per cent. The annual figure has been revised downward, as the economy is expected to show a 3.7 per cent contraction in the fourth quarter.
Floods are expected to damage the country's gross domestic product by Bt200-Bt300 billion for this year, said Arkhom Termpittayapaisith, NESDB's secretary general, at a press conference today.
While floods shaved off GDP by 0.7 per cent in the third quarter, the damage represented 8.7 per cent in the fourth quarter.
Still, thanks to the government's planned rehabilitation and resumption of the manufacturing sector, the economy should expand 4.5-5.5 per cent next year, the economic think tank estimated.
This year's consumer price index is forecast at 3.8 per cent, compared to the previous estimate of 3.6-4 per cent, he said.
