Finance may axe growth forecast again
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Fiscal Policy Office director-general Krisda Chinavicharana signalled another revision in the 2015 economic growth forecast on absence of good news.
In April, it revised down the forecast from 3.9 per cent to 3.7 per cent, as export revenue should expand by only 0.2 per cent from the previous target of 1.4 per cent.
Krisda said that key economic indicators have not yet shown improvement, particularly the economic condition of major trade partners. This would affect Thailand's exports, which contribute a sizeable portion to the gross domestic product (GDP).
He said increased public expenditure and tourism income may not offset a significant drop in export revenue.
"The office is evaluating if higher tourism income and higher public expenditure can offset the export fall. It remains to be seen if budget disbursement could hit 87 per cent as targeted and if investment budget for 2016 fiscal year could be disbursed immediately in October," he said.
