EU sanctions to further dampen export sector: BOT
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The European Union's threat to impose sanctions on Thailand's fishery products would exacerbate the Thai export sector, said a Bank of Thailand official.
Don Nakornthap, the director of the Macroeconomics Policy Office, said at the press conference today that the sanctions will increase the risks that exports may grow less than 0.8 per cent or even show zero growth.
The EU has threatened to impose sanctions if Thailand fails to come up with actions on human trafficking within six months.
Don said the EU sanctions would exacerbate the export sector, as fishery products from Thailand to the bloc are worth about US$320 million - or over 10 per cent of total fishery products of $2.1 billion.
The EU is the third biggest market for Thailand's fishery products, after Japan and the United States.
Don noted that the sanctions would also impose spillover effects on the processed industry, as processed food to EU generates $300 million in export revenue or 10 per cent of total exports of $3 billion.
Don added that the Bank of Thailand may revise the economic growth forecast in June pending for clearer indicators.
The Monetary Policy Committee will convene on June 10.
The central bank is waiting for official economic indicators in the first quarter, to be released by the Office of National Economic and Social Development Board.
He admitted that if the quarterly growth is below 4 per cent, that indicates the negative growth from the previous quarter and hence sluggish economic recovery. Still, he is convinced that Thailand's economic performance would be positive in the second quarter given more public spending and the expected recovery in exports.
NESDB Secretary-General Arkhom Termpittayaphaisith last week showed his confidence that the first-quarter growth would be 3 per cent.
