Citibank lowers Thailand’s economic growth forecast to 3.3 percent

Bangkok (VNA) – Citibank has predicted Thai economy to expand up to 3.3 percent in 2019, while urging the new government to stimulate the domestic economy.

Citibank Thailand’s Economist Nalin Chutchotitham has revealed that the global economy this year could grow 2.9 percent, below 2018’s figure of 3.2 percent, due to tensions resulting from the trade tensions between the US and China, and the possibility of the US Federal Reserve (FED) to cut interest rates.

Due to these conditions, Citibank has lowered Thailand’s economic growth projection this year from 3.8 to 3.3 percent. The bank now projects a slight Thai economic recovery in 2020 with 3.7 percent annual growth.

The export and tourism sectors in the remaining half of 2019 are still showing growth potential compared to earlier this year, while the Thai baht is likely to remain strong until early 2020, being valued at between 31.20 and 31.50 baht per US dollar.

On the forming of the new Cabinet, Citibank considers this a positive factor for the economy, yet the extent of it will depend on the government’s economic stimulation measures.

The bank recommends the government urgently stimulate the domestic economy to compensate for a deceleration in the export and tourism sectors, and to expedite pending projects such as the Eastern Economic Corridor and state enterprise investments. -VNA