Growth forecast cut to 3-3.5%: UTCC
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The University of Thai Chamber of Commerce's economic forecasting centre revised down growth forecast for Thailand's economy this year from 3.5-4 per cent to 3-3.5 per cent, despite the lifting of the martial law.
Thanavath Phonvichai, director of the centre, attributed the decision to the poor economic performance in the first quarter. Growth in the first quarter is expected at only 2.5 per cent, before edging up to 2.5-3 per cent in the second quarter. In the second half of the year, Thailand should show the economic growth of 4 per cent.
He said that Thailand's exports may rise by only 0-1 per cent, against previous forecast of 3-4 per cent. The only hope lies on public spending.
The forecasts will be reviewed and announced again on April 16.
On the lifting of martial law, Thanavath noted that it could boost tourism and the economy. He also said that the delayed enactment of the land and building law should also boost consumer confidence.
"The government believes the Article 44 would support the tourism sector and the economy. It remains to be seen how the power would be deployed," he said.
