The Bank of Thailand (BoT) has warned that the country may not achieve its 1.5 percent economic growth target for this year after official August figures underscored slack economic momentum.
The economy is on course to recover, but the rebound looks a bit fragile due to lower than expected public and private spending, which could make a V-shaped recovery weaker, Roong Mallikamas, senior director for macroeconomic and monetary policy of BoT, was quoted by Bangkok Post as saying.
Public spending and domestic consumption cooled as exports remained weak, however, overall stability remains sound with inflation falling for three straight months from June, high foreign reserves and a current account surplus, she said.
BoT recently kept its economic growth forecast at 1.5 percent this year, but cut next year's GDP outlook to 4.8 percent from 5.5 percent. This year's forecast has not factored in the new government's proposed economic stimulus measures.
The slowdown in Thai private spending in August could be attributed to delays in public spending. Any impact from an economic stimulus package may not emerge in the final quarter. Public and private spending is expected to be the major driving force during the final three months, Roong said.-VNA
The economy is on course to recover, but the rebound looks a bit fragile due to lower than expected public and private spending, which could make a V-shaped recovery weaker, Roong Mallikamas, senior director for macroeconomic and monetary policy of BoT, was quoted by Bangkok Post as saying.
Public spending and domestic consumption cooled as exports remained weak, however, overall stability remains sound with inflation falling for three straight months from June, high foreign reserves and a current account surplus, she said.
BoT recently kept its economic growth forecast at 1.5 percent this year, but cut next year's GDP outlook to 4.8 percent from 5.5 percent. This year's forecast has not factored in the new government's proposed economic stimulus measures.
The slowdown in Thai private spending in August could be attributed to delays in public spending. Any impact from an economic stimulus package may not emerge in the final quarter. Public and private spending is expected to be the major driving force during the final three months, Roong said.-VNA
