The Bank of Thailand has revised down its 2015 gross domestic product growth forecast to 3.8% from 4% while keeping the 2016 figure at 3.9%.
The prediction was based on headline inflation at 0.2% compared to 1.2% earlier while core inflation remained at 1.2% like in the previous forecast, Mathee Supapongse, assistant governor for monetary policy, said on Friday.
He ruled out deflation as slowing inflation was a global trend.
Export growth forecast was also trimmed to 0.8% from 1% although the overall economy could pick up in the latter half of 2015.
"The revision was prompted by the less-than-expected expansion in the fourth quarter of 2014. Shrinking confidence among consumers and businessmen, especially in the first two months of this year, was also a factor. Slow disbursements of state budgets and public investment also stalled private investment," he said.