WB revises Thailand’s GDP growth to 4% in 2013, 4.5% in 2014

BANGKOK, October 7 (TNA) - The World Bank has revised Thailand’s gross domestic product (GDP) growth to 4 per cent year-on-year in 2013, from 5 per cent it projected earlier, and to about 5 per cent year-on-year in 2014. Kirida Bhaopichitr, a senior economist at the World Bank office in Bangkok, told journalists on Monday that the US-based World Bank's reduction in Thailand’s GDP projected growth this year followed a slow recovery of the world economy and the slowdown of China’s immense economy, which had already affected Thai exports during the first half of this year to grow at only 1.2 per cent year-on-year. Kirida assessed that Thailand’s exports during the calendar 2013 were latest projected to grow only 2.5 per cent year-on-year, while imports were foreseen to expand by 6 per cent year-on-year. According to the World Bank's senior economist, Thailand’s economy in 2014 is expected to expand by 4.5 per cent year-on-year, but the target could not be met if there was a delay in the Thai government's spending, coupled with the country's rising household debts, which could affect private domestic consumption eventually. On current US economic problems, the senior World Bank economist acknowledged if the US economy slowed down, it could affect and lower the United States' GDP by approximately 2 per cent. The World Bank's senior economist cautioned even if the United States' GDP lowered by only 1 per cent, it could hurt GDPs of countries in East Asia by around 0.5 per cent. The World Bank's senior economist said it was believed initially that the US government would be allowed by the Congress for the increase of its debt ceiling before the deadline, set on October 17, 2013. The World Bank, meanwhile, anticipated that the Thai government would continue to suffer losses on its rice-pledging scheme at about 200 billion baht annually, equivalent to 2 per cent of Thailand's overall GDP. The Thai government is expected to suffer as much as 400 billion baht in two years after the rice-pledging programme is implemented, but it should not be a problem because the Thai administration has already reserved money for local farmers. The World Bank, nonetheless, suggested that the Thai government be cautious on its rice-pledging programme and prevent it from hurting the country’s credit rating in the long run. (TNA)