Growth forecast may be cut to 2.4%: SCB
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Siam Commercial Bank's economic team pens the 2014 economic growth forecast at 2.4 per cent, if the political crisis is prolonged through the first half.
The Economic Intelligence Centre sets the forecast at 3 per cent now.
It noted that without a permanent government, the public spending is directly hit. Meanwhile, the political crisis has sent spillover impacts on domestic consumption and investment.
It noted that exports, expected to grow by 6 per cent this year, would be the key engine to drive the economy.
The policy rate is also expected to be slashed to 1.75 per cent in the first half, to boost the economy.
The Thai baht is expected to move in the range of 32-35 per dollar through 2014, to be mainly influenced by domestic political situation and the tapering in the US quanlitative easing measure.
