BANGKOK: Thailand’s central bank cut its 2015 growth forecast and said exports would contract for a third straight year and that consumer prices will fall this year.
The Bank of Thailand (BOT) lowered its growth projection to 3.0 percent from 3.8 percent seen three months ago. A year ago, after the military seized power to end months of political turmoil, the central bank had forecast 5.5 growth for 2015.
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The central bank, which announces economic forecasts every three months, said there are “downside risks” to growth. But it raised its 2016 forecast to 4.1 percent from 3.9 percent.
“The economy will return to its normal trend next year,” Assistant Governor Mathee Supapongse said adding that exports should increase 2.5 percent in 2016.
The BOT did not use “deflation” but said that the consumer price index will contract 0.5 percent this year, rather than increase 0.2 percent as it projected in March.
Its statement said the probability of deflation “is still low as consumption still expands, prices of most of goods and services continue to be flat or increase, and inflation expectations remain near the policy target”.
A year ago, the BOT had predicted a 6 percent increase for exports in 2015.
