Monday, June 30, 2014

RHB | Economic Highlights (Thailand) – Stabilisation In The Political Climate And A Functioning Government To Provide Impetus To Growth Going Forward



Economic Research
30 June 2014

Thailand


Economic Highlights





Thailand’s economic growth contracted by 0.6% y-o-y in 1Q 2014, amid heightened political uncertainty. Since then, a coup launched by the Thai military on 22 May should at least stabilise the  overall political situation and contain its adverse impact on the economy. The government is set to unveil an economic roadmap outlining several urgent measures including making delayed state payments to rice farmers, rolling over tax cuts, accelerating budget disbursements for FY2014 and looking to fast-track infrastructure projects for budget FY2015. Although the junta’s economic roadmap will likely provide a boost to economic activities, we think it may have come in too late to lift the full-year GDP for 2014, in which we retained our forecast at 1.2%, slower than the +2.9% registered last year.

Economist:  Peck Boon Soon  | +603 9280 2163


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