KResearch cuts GDP forecast to 4.5-5.5%
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Kasikorn Research Centre has revised downward the Thai economic growth forecast from 4.5-6 per cent to 4.5-5.5 per cent, following the slowdown in exports.
In its note, the research house said that in light of the euro crisis as well as slowdown in some parts of the world, Thailand's export sector would be affected and this would shake the growth momentum. Meanwhile, some export sectors like rice and labour-intensive industries have lost competitiveness. They are not expected to regain competitiveness in the remaining months of the year.
It also noted that the economy will keep expanding, as a result of low growth base in 2011. Still, domestic consumption is necessary to keep the economy buoyant in the second half. And that must be supported by government budget disbursement as well as investment by the public and private sectors.
