People buy food at a market in Bangkok (Photo: AFP/VNA) Bangkok (VNA) - The Bank of Thailand (BoT) lowered the country’s economicgrowth forecast to 2.5 percent in 2019 and 2.8 percent in the next year due toheightened external risks.
The BoT trimmed its 2019 GDP growth forecast to 2.5 percent from 2.8 percentestimated in September and lowered its 2020 growth outlook to 2.8 percent from3.3 percent on heightened external risks. Last year's growth was 4.1 percent, reportedthe Bangkok Post.
Exports, a key driver of economic growth, are now expected to shrink 3.3percent this year, compared with a 1 percent fall seen earlier. Next year'sexports are expected to rise by a smaller 0.5 percent, rather than 1.7 percent.
The Thai economy would expand below its potential and below the previousforecast, mainly as merchandise exports had contracted more than the previousassessment and were projected to recover more slowly than expected, accordingto the central bank’s a statement.
The MPC committee said in a statement the current policy rate remainsaccommodative for growth and supports prices moving toward the central bank'starget - currently 1-4 percent.
The central bank cut its forecasts for headline inflation in 2019 to 0.7percent from 0.8 percent previously, and to 0.8 percent from 1.0 percent for2020.
The BoT also expressed concern about the strength of the baht, Asia's bestperforming currency this year, which has risen around 7.6 percent against theUS dollar, putting further pressure on already weak exports./.
VNA
