BoT to lower 2013 growth target
- Published: 28/06/2013 at 04:44 PM
- Online news:
The Bank of Thailand has confirmed that it will have to adjust its growth projection for 2013 to below the previous target of 5.1% due to a slowdown in the economy.
Senior director at the BoT Methee Supapong said on Friday that growth in the economy slowed in May, in line with a decline in domestic consumption, resulting from an end to government stimulus measures and warnings over rising household debt.
The central bank's revised gross domestic product growth projection will be officially announced on July 19, he said.
Exports over the month were down 5.1% to US$19.5 billion, due to fragile overseas demand for Thai goods, particularly in China, which is facing economic slowdown itself. This has led to a 7.8% decline in industrial output and a 3.3% drop in private investment contracts, Mr Methee said.
However, the tourism sector expanded strongly in May, boosted by an increasing number of visitors from China, Russia and Malaysia, he said.
The senior director said overall economic stability over the month was still good, although there was a slight increase in the unemployment rate, which rose to 0.7%, up from 0.6% reported April.
General inflation was down to 2.27% from 2.42%, in line with the core inflation, excluding food and energy, which dropped to 0.94% from 1.18%, he said, adding that the current account deficit stood at US$1.1 billion.
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