Somkid: Delay forming govt depressing GDP growth
published : 27 Jun 2019 at 13:28
writer: Online Reporters
The delay in the formation of the new government caused the Bank of Thailand to lower its 2019 economic growth forecast from 3.8% to 3.3%, Deputy Prime Minister Somkid Jatusripitak said on Thursday.
He was confident that GDP growth would pick up again once the new cabinet was in place.
Mr Somkid was speaking when opening the Saha Group Fair at the Bangkok International Trade and Exhibition Centre in Bang Na district.
"It (the growth rate revision) is expected because ... the new government has not been officially formed. Besides, the trade war between China and the United States affects the world economy and thus slows down the Thai economy," Mr Somkid said.
"But I believe that from now on the Thai economy will gradually pick up because the new cabinet is about to take office and proceed with policies."
He said the government would speed up the disbursement of budgets for mega infrastructure projects and that would raise the economic growth rate above the estimation.
Asked if the coalition government would have stability problems because it relied on so many political parties, Mr Somkid said he did not expect such a problem, because all the parties wanted to develop the nation.