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