Thailand's gross domestic product (GDP) growth for the industrial sector is expected to dip to a range of 1.5% to 2.5% this year if the baht averages 28 to the US dollar for all of 2013, says the Industry Ministry.
Ministry spokesman Nattapon Nattasomboon said a 9.9% gain in the baht will cause a drop of 3.6% in industrial GDP.
Previously, the Industrial Economics Office forecast 5-6% growth in industrial GDP based on an exchange rate of 30.58 baht to the dollar, valuing industrial GDP at 4.78 trillion baht. The baht averaged 31.08 in 2012.
At 28 to the dollar, industrial GDP will decline by 171.6 billion baht while industrial exports are expected to fall by 11% or 569.37 billion.
If the baht appreciates by 6.7% against the greenback, industrial GDP growth will decline by 1.1% to a range of 4-5%.
Industrial exports are expected to drop by 7.2% or 384.8 billion baht from a previous projection of 5.74 trillion baht.
Six sectors hurt by the strong baht are computers, automotive, jewellery, rice processing, rubber products and plastics, said Mr Nattapon.
He called on the Bank of Thailand to maintain the stability of the baht, as a volatile currency could cause trouble for the industrial sector.
About the author
- Writer: Nanchanok Wongsamuth
Position: News Reporter