NESDB revises down 2013 growth forecast
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The Office of National Economic and Social Development Board has revised down 2013 economic growth forecast to 4.2-5.2 per cent, due to the lower-than-expected growth in the first quarter.
Previously, it forecast 4.5-5.5 per cent growth rate for the year. The Bank of Thailand's forecast is 5.1 per cent.
Baht appreciation is part of the problems, according to Arkhom Termpittayapaisith, secretary general of the NESDB. At the press conference on Monday, he suggested the Bank of Thailand's Monetary Policy Committee to slash the policy rate "aggressively", in light of stabilised inflation against irregular capital inflows to the Kingdom. The MPC will convene on May 29.
He said that as the baht surges to 29 per US dollar from 31 in the same period last year, Thailand's export value in baht term has been shaved off by around Bt180 billion.
The NESDB announced today that the Thai economy expanded 5.3 per cent year on year in the first quarter this year.
Compared with growth rate of 18.9 per cent in the fourth quarter last year, the GDP contracted 2.2 per cent, according to the think tank.
Arkhom attributed the growth to domestic demand and tourism growth. Exports were weighed down by weak global demand and the baht appreciation.
