As GDP & exports turn bearish, Thai entrepreneurs will have to be more creative

Thailand’s entrepreneurs will have to be more creative, as Thailand’s GDP and export is being cut. Thailand’s economy is expected to grow 4.5 per cent this year, lower than the 5.3 per cent projected in March due to falling private consumption and slow recovery in the economies of trading partners, a Finance Ministry official said on Thursday. That was the mid-point of a 4-5 per cent forecast range, the ministry’s fiscal policy office chief, Somchai Sajjapong, told reporters. The Bank of Thailand has also said it would cut its 2013 GDP growth estimate from 5.1 per cent when it reviews the figure next month, following weaker-than-expected gross domestic product (GDP) data for the first quarter. The International Monetary Fund predicts growth of 4.75 per cent. Meanwhile, TMB bank says Thailand’s export this year may expand by only 3.5 per cent due mainly to weaker-than-expected demand, according to TMB Analytics. The research unit expected that exports in the remaining 7 months of the year would expand only 4.6 per cent. The economic condition of major trade partners – mainly European Union and China – weakened in the second quarter and is unlikely to recover in the latter half. Thailand’s export value in May contracted 5.2 per cent, pressuring the five-month growth figure to only 1.56 per cent, according to Commerce Ministry’s data.


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