BOT expected to lower growth forecast

[CrazyExpat]

The Bank of Thailand is likely to revise downward its economic growth forecast due to the weakening global economy that has continued to dampen merchandise exports although domestic consumption and tourism are still expanding.

Private investment has decelerated but capital inflows last month reached Bt100 billion.

"It is likely that the central bank will revise down the economic projection during the meeting of the Monetary Policy Committee on October 17 as the weakening global economy has adversely affected exports," said Mathee Supapongse, senior director of the macroeconomic and monetary policy department.

"However, as Thai exports also depend on imports, deceleration of exports will also reduce imports, so the net negative impact on the economy will not be much.

The impact will be greater if the country faces only an export slowdown," he added.

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