HSBC cuts growth forecast to 1.4%
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HSBC has cut Thailand's economic growth forecast this year from 3 per cent to 1.4 per cent, citing the weaker-than-expected demand in the first quarter.
The household debt at 82.3 per cent of gross domestic product (GDP) is among biggest challenges and remains a barrier to strong acceleration in consumer spending through the rest of the year.
In this scenario, it expects the Bank of Thailand to maintain the policy rate at 2 per cent.
Still, in the research note, it expects "substantially faster" growth in 2015.
"GDP growth may exceed 5 per cent next year if political stability lasts," it noted.
