Full-blown euro crisis to plunge growth to 1%
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Kasikorn Research Centre expects the Thai economy to expand only 1 per cent this year, if the euro zone crisis worsens and ignites another global economic crisis.
The research centre expected the economic growth at 4.3 per cent in 2012, which would raise the gross domestic product to Bt11.6 trillion, against Bt10.7 trillion in the previous year.
The forecast is based on the export growth projection of 2-8 per cent, Dubai crude oil of US$95-$110 per barrel, and 3.5-4.5 per cent of inflation.
In case of full-blown crisis in the euro zone, Thailand's export value this year is expected to contract 8 per cent. As crude oil price should plunge to $84.5 per barrel, the inflation would be only 2.8 per cent, the research house said.
