The Fiscal Policy Office (FPO) has cut its economic-growth projections for 2014 to 1.4%, down from the earlier forecast of 2%, due to slowing exports.
A shopper walks through a clothes store in Bangkok on Wednesday. The Fiscal Policy Office cut its economic-growth projections to 1.4%. (EPA photo)
FPO director-general Kritsada Jinavijarana said projections for annual gross-domestic-product growth will range between 1.2% and 1.7%, down from the earlier predicted range of 1.5%-2.5%.
Mr Kritsada said the office anticipated economic growth of 2.9% in the second half of the year, thanks to a more-stable political environment and the implementation of economic-stimulus measures during this year's final quarter.
However, the downward revision was in line with the dimmer outlook for exports and tourism, which have recovered more slowly than hoped.
The office predicts Thailand's GDP will grow 4.1% in 2015, moving in the range of 3.6%-4.6%, thanks to the government's investment in infrastructure and improved tourism numbers.
The prediction is in line with the Bank of Thailand, which projected the economy to grow only 1.5% this year.
But the Commerce Ministry hopes exports in the last quarter will revitalise the sagging economy.
Commerce Minister Chatchai Sarikulya said the ministry will push for exports from October to December to 650 billion baht a month by finding new markets including the Middle East and Russia, and boosting border trade with neighbouring countries.
Exports showed signs of a rebound in September to positive territory as shipments jumped 3.19% year-on-year. But the overall picture was negative as exports for the first nine months contracted by 0.85% from the same period last year.
The ministry projected a 4% increase next year by banking on the recovery of the global economy.