Thai central bank keeps GDP growth forecasts, raises export outlook

[BANGKOK] Thailand's central bank on Wednesday kept its economic growth forecast at 3.2 per cent for this year and next but raised its outlook for exports.

The Bank of Thailand (BOT) expects exports to fall 0.6 per cent this year, rather than decline 2.5 per cent as previously projected. It forecasts exports to be flat in 2017, rather than decline 0.5 per cent from 2016.

Thai exports, worth more than two-thirds of the economy, have contracted in each of the past three years.

The BOT trimmed its 2016 forecast for headline inflation to 0.2 per cent this year from 0.3 per cent seen three months ago, and lowered its 2017 estimate to 1.5 per cent from 2.0 per cent.

The government planning agency has predicted GDP growth of 3.2 per cent this year and 3.0-4.0 per cent in 2017.

The Thai economy expanded 2.8 per cent last year.

REUTERS