, Thailand

Thailand's GDP forecast slipped to 4.6%

On the back of reduced government investment spending.

According to DBS, GDP forecast for Thailand has been lowered to 4.6% as its projections for government investment spending gets reduced sharply in 2H13.

Here's more:

The THB 350bn water management program hit a snag after the Central Administrative Court ordered environmental impact assessment (EIA) and health impact assessments (HEIA) on the projects last week.

Under an optimistic scenario, these assessments would likely take at least several months (up to a year) and this implies a delay in infrastructure spending over the coming two quarters even though winning bids were ready to be awarded.

Accordingly, we have revised down our GDP growth forecast to 4.6%, from 5.0% previously as our projections for government  investment spending gets reduced sharply in 2H13.

We now expect a pickup in public infrastructure spending only in 2Q14 and have bumped up our 2014 GDP growth forecastto 5.2% from 5.0% previously.

The medium term outlook forthe Thai economy depends critically on three factors – the execution of the infrastructure projects (THB 350bn water management plan and THB 2.2trn infrastructure program), the momentum of domestic demand growth and a recovery in external demand.

As mentioned earlier, public infrastructure spending islikely to be delayed with the bulk of the impact on growth manifesting only in 2Q/3Q 2014. Regarding domestic demand,some momentum appearsto have been lostin 1Q.

The government appears keen on supporting consumption and hassince gone back on its plan to reduce pricesforthe rice pledging scheme by 20% to ease strains on the budget.

With minimal price pressures and fiscalstimuluslikely to stay for a while more and policy rates can stay low, consumption islikely to stay supported. On the externalfront, global demand is unlikely stage a strong recovery.

With moderate growth in China and the US,the externalsectoris unlikely to pose headwinds nor provide any tailwindsin the coming months.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

Lorem Ipsum text in year 2025
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old.
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.

Exclusives

Cropping Issue on Responsive one
Contrary to popular belief, Lorem Ipsum is not simply random text. 
Artificial Inteliigence Testing
Contrary to popular belief, Lorem Ipsum is not simply random text. 
Lorem Ipsum is simply dummy text of the printing and typesetting industry.
Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia, looked up one of the more obscure Latin words, consectetur, from a Lorem Ipsum passage, and going through the cites of the word in classical literature, discovered the undoubtable source. Lorem Ipsum comes from sections 1.10.32 and 1.10.33 of "de Finibus Bonorum et Malorum" (The Extremes of Good and Evil) by Cicero, written in 45 BC. This book is a treatise on the theory of ethics, very popular during the Renaissance. The first line of Lorem Ipsum, "Lorem ipsum dolor sit amet..", comes from a line in section 1.10.32.
Lorem Ipsum Singapore Business Review
The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.The text to display in the title bar of a visitor's web browser when they view this page. This meta tag may also be used as the title of the page when a visitor bookmarks or favorites this page, or as the page title in a search engine result. It is common to append 'Singapore Business Review' to the end of this, so the site's name is automatically added. It is recommended that the title is no greater than 55 - 65 characters long, including spaces.