Bank of Thailand cuts 2013 growth forecast to 4.2%

The Bank of Thailand (BoT) has lowered its 2013 Gross Domestic Product (GDP) growth projection by 0.9 percent to 4.2 percent from the 5.1 percent given in the previous projection. The BoT, releasing its new projection on Friday, lowered the 2013 GDP projection to make it in line with the delayed global recovery and moderate domestic demand. Paiboon Kittisrikangwan, BoT assistant to the governor and secretary of the Monetary Policy Committee (MPC), said that given the slow growth registered in China and Asia, Thailand's export recovery is expected to be delayed. The 2014 GDP is projected to grow at 5 percent as earlier projected. He said that 2013 exports are projected to grow 4 percent, down from the previously forecast 7.5 percent. 2014 exports are expected to grow at 8 percent, instead of the earlier projected 10 percent. Inflation readings will likely remain low. Both demand and cost pressures have subsided in line with a moderate demand outlook and the lower projected path of global oil and commodity prices, coupled with the increase in domestic prices of liquefied petroleum gas that has been postponed for another two months, the BoT statement said. 2013 Inflation is projected at 2.3 percent, lower than the earlier 2.7 percent, and core inflation at 1.1 percent down from 1. 6 percent, according to the BoT.