Thai central bank cuts 2015 growth, export forecasts

[BANGKOK] Thailand's central bank on Friday cut its forecast for 2015 economic growth to 3.8 per cent, from 4.0 per cent seen three months earlier, citing slower than expected government spending and weak confidence.

The Bank of Thailand projected growth of 3.9 per cent for 2016. This is its first forecast for next year.

The military took power in May last year in a bid to end political unrest that hurt confidence and domestic activity, but it has struggled to get the economy on track.

The central bank also trimmed its export growth projection for 2015 to 0.8 per cent from one per cent, Assistant Governor Mathee Supapongse, told a briefing.

Southeast Asia's second-largest economy grew only 0.7 per cent in 2014, its weakest pace since flood-hit 2001.

REUTERS