BOT:Political problems affect Thailand’s GDP

BANGKOK, April 26 (TNA) - The Bank of Thailand (BOT) says ongoing domestic political problems have delayed preparations for the state budget expenditure for the 2015 fiscal year, which starts on October 1, 2014, while the slowdown of money injection into the national economy is forcing the central bank to, probably, reduce Thailand's gross domestic product (GDP) growth this year. BOT Spokeswoman Rung Mallikamas told journalists that the central bank's Monetary Policy Committee (MPC) is scheduled to meet again on June 18, 2014 and it is likely that it will further cut Thailand’s projected GDP growth this year, now set at 2.7 per cent, as the national economy during the first two months of this year fell much more than expected. According to the spokeswoman, only 49.2 per cent of money budget from the government was injected into the economy system, compared to 50.2 per cent during the same period last year. The spokeswoman said preparations of the government 2015 fiscal budget were also delayed, as the caretaker government is not constitutionally authorised to prepare new budget. The spokeswoman acknowledged although growing Thai exports at 4.5 per cent could drive the national economy, they could not compensate the fall of investment by both the public and the private sectors, cautioning even the domestic political crisis eases, Thailand’s economy may not recover fast like before because of existing high household debts, which have forced people to be cautious in spending. (TNA)