Thailand’s economy grew more slowly than expected in the third quarter, and the government lowered its full-year forecast as the country deals with the impact of a US-China trade dispute and a strong currency.
GDP rose 2.4 percent from a year earlier, the National Economic and Social Development Council said yesterday, below the median estimate of 2.7 percent in a Bloomberg survey of economists.
The council cut its GDP forecast to 2.6 percent for this year — from an earlier view of 2.7 to 3.2 percent — and said growth should accelerate to 2.7 to 3.7 percent next year.
Thailand’s trade-reliant economy has been hit by slumping exports, a surging currency and mixed performance in the tourism sector.
The central bank earlier this month announced measures to slow gains in the baht, which has been the strongest performer in emerging markets over the past year, rising about 9 percent.
Council Secretary-General Thosaporn Sirisumphand called for more stimulus to supplement a US$10 billion package approved in August.
A global slowdown, drought and volatility remain key challenges for the economy, he said.
“We need to use all tools that we have, as there are still a lot of risks that we can’t control,” Thosaporn told reporters in Bangkok. “We can’t be complacent.”
Thailand’s economy appeared to bottom out in the second quarter, when it grew at its slowest pace in nearly five years, but the rebound has been more muted than expected, Thosaporn said.
The baht yesterday traded at 30.24 per US dollar in Bangkok, little changed from before the data release.
“Baht strength hurt exports and private investment in the third quarter,” he said. “We think the baht strength may continue.”
The council said exports are expected to shrink by 2 percent this year, compared with the 1.2 percent contraction it forecast in August.
The economy should pick up in the final quarter of the year and accelerate into next year, driven by government stimulus measures, gradual recovery in exports and an improvement in tourism, the council said.
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