Thailand cuts export growth forecast to 4.5%
2012-09-14 16:56:15
Thailand's Finance Ministry slashed its forecast for export growth this year to 4.5 per cent from 12.8 per cent as Europe's debt crisis erodes demand for the nation's electronics, textiles, rice and rubber.
Economic growth may also fall short of the ministry's 5.7 per cent projection, Mr Somchai Sujjapongse, head of the Ministry of Finance's fiscal policy office, said yesterday.
The revision came a day after Bank of Thailand Governor Prasarn Trairatvorakul said overseas sales may fall short of the central bank's target of 7 per cent. Exports fell 4.5 per cent in July and 2.3 per cent in June, according to government data.
Exports account for about two-thirds of Thailand's economy and European nations buy about 8.6 per cent of all goods shipped from the South-east Asian nation, according to government data.
The central bank reduced its economic growth forecast for the year to 5.7 per cent from 6 per cent in July and pared its export growth estimate to 7 per cent from 8.3 per cent. Thailand's economy expanded 4.2 per cent in the second quarter after an increase of 0.4 per cent the previous three months, official data showed on Aug 20.
The Bank of Thailand kept its benchmark interest rate unchanged at 3 per cent for a fifth meeting this month, but has said it is ready to adjust policy if needed.