The Fiscal Policy Office (FPO) has its trimmed economic growth projection for this year, from 4.5% down to 4%, citing a slump in exports and a slowdown in domestic consumption and private investment.
FPO deputy director Ekniti Nitithanprapas said on Monday that the economy banked on the third and fourth quarters to grow at least 4.4% and keep its 4% forecast intact.
The country’s economy grew 5.3% in the first three months, in line with the FPO's projection, but the second quarter is epected to fall below its 4% forecast.
Mr Ekniti, however, said rising exports to Cambodia, Laos, Myanmar and Vietnam and robust growth of the tourism sector will carry Thailand through to the 4% target.
Thai exports to the four countries accounted for 7.5% of total shipments this year. The tourism sector grew 20% this year with Chinese visitors driving the growth.
The FPO also expected a rise in agricultural prices, especially rubber, and state investment would also help Thailand reach the 4% growth target, he added.