Thailand signaled growth in the second half of this year may be weaker than previously forecast as a global slowdown hurts exports from Southeast Asia’s second- biggest economy.
Gross domestic product is forecast to expand 5.5 percent to 6 percent, compared with a previous growth range of 5.5 percent to 6.5 percent, Arkhom Termpittayapaisith, secretary-general of the National Economic and Social Development Board, said in Bangkok today. It reduced the forecast for export growth to 7.3 percent from 15.1 percent on concern Europe’s crisis will damp demand, he said.
Yingluck Shinawatra, Thailand's prime minister, has shelved politically contentious legislation to focus on the economy as Thailand recovers from the worst floods in almost 70 years in 2011. Photographer: Dario Pignatelli/Bloomberg
Thailand’s warning underscores the need for Asian economies to rely on domestic demand for expansion as Europe’s crisis and elevated U.S. unemployment erode export gains. While Thailand joined Malaysia and Indonesia among Southeast Asian nations reporting accelerated growth in the second quarter as policy makers implement fiscal stimulus, its downgraded forecast may reflect regional struggles with sales abroad.
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