HSBC cuts growth forecast to 3.1%
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HSBC has lowered Thailand's 2015 economic growth forecast further to 3.1 per cent from 3.6 per cent, taking into consideration the weak economy recovery and persistent negative risks for exports.
But it raises the 2016 forecast slightly to 3.3 per cent from 3.1 per cent.
Nalin Chutchotitham, HSBC economist, noted that apart from economic risks, uncertainties are also building up on the political front, especially with regards
to the timing of the election, which depends on the enactment of a new constitution. The draft charter is currently being amended with suggestions from the government and the public, and it will be put to the vote in the National Reform Council and a referendum.
"Although we expect the economic recovery to strengthen under the ‘no-unrest’ assumption, prolonged political uncertainty may cap private investment growth," she said.
