FRIDAY, March 29, 2024
nationthailand

BOT lowers 2019 GDP forecast to 3.3 per cent

BOT lowers 2019 GDP forecast to 3.3 per cent

The Bank of Thailand (BOT) has lowered its 2019 gross domestic product forecast to 3.3 per cent from the previous 3.8 per cent made in March.

Export growth is expected to be flat year on year, due to three factors: impacts of the US-China trade tensions, the slowdown of the global economy and the strong baht.
The Kingdom's strong current account surplus of US$13.5 billion is seen as the key factor in the strengthening of the baht by 5 to 6 per cent since January, making it the strongest currency in the Asia-Pacific region.
This is because the baht is being seen as a safe haven for foreign investors, causing large capital inflows into the country, the BOT said.
Meanwhile, inflation remains at 1 per cent. While this is low, the central bank stated that the inflation level is still within the set target and does not present a major risk to the economy.
The BOT will hold the policy rate at 1.75 per cent for now. Instead, it will use other measures such as tightening regulations on non-resident baht accounts and non-resident baht accounts for securities to slow down capital inflows into the Kingdom and prevent further strengthening of the baht.

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