IMF sharply cuts Thai GDP forecast to 2.5%

Though this showed a recovery from the 0.9 per cent growth rate in 2014, it represented a 1.2 percentage point cut from the projection revealed in April.  The IMF also slashed the 2016 growth projection for Thailand from 4 per cent to 3.2 per cent. 

At the rates, Thailand would experience the slowest growth compared to other four countries grouped as Asean-5. Asean-5 as a whole, which includes Indonesia, Malaysia, the Philippines and Vietnam - is expected to expand by 4.6 per cent and 4.9 per cent in 2015 and 2016, respectively. The projections were cut by 0.1 and 0.2 percentage point from July figures. 

In April, the IMF raised the projection for Thailand from 3.5 per cent to 3.7 per cent but cited a number of downside risks from possible policy slippages, weaker-than-expected private demand, political uncertainty, global financial market volatility, and slower growth in advanced and emerging economies. It said Thailand's private investment was being hampered by low capacity utilisation, weak external demand, and concerns over political uncertainty, while private consumption was weakened by high household debt and tighter credit conditions.

In the updated World Economic Outlook report, the IMF cut global economic growth forecast by 0.2 percentage point to 3.1 per cent in 2015 and 3.6 per cent in 2016.