Growth target revised down to 3%
The Finance Ministry's Fiscal Policy Office has revised down the economic growth target for the second time, bringing the original target at 3.9 per cent to 3 per cent.
In the first revision announced in April, the growth forecast was set at 3.7 per cent.
Krisda Chinavicharana, director-general of the office, is confident that the revised target is achievable despite poor export data in the first half.
"Chiefly, the tourism industry is growing, with the greater number of tourists from China and Malaysia. This should benefit related industries," he said.
Thailand's tourist arrivals are expected to range between 28.9-30.9 million this year.
Meanwhile, public spending is expected to shore up the economy, also because of off-budget spending on road infrastructure and water projects.
The office expected an improvement in private consumption, compared to last year, due to low oil prices and lower interest rates. Meanwhile, private investment should also improve, driven by government projects.
He admitted that fragile global economic conditions would put pressure on Thailand's exports. Growth in export value for the entire year is expected to be between zero to 2 per cent.
In the first half, export value contracted by nearly 5 per cent from last year.
